As a plan sponsor, when is the last time you benchmarked your 401(k) plan against other companies of the same size and industry as you? Are you confident your retirement plan is up to par with the latest plan features? Are your employees satisfied with it?
Here's why a benchmarking review is in order:
- 401(k) plan design features have improved drastically compared to older plan designs.
- Costs of 401(k) plans have decreased due to the competitive marketplace and fee disclosure rules.
- As a fiduciary you have an obligation to regularly review and monitor your plan.
Some of the recent changes in the 401(k) marketplace include automatic enrollment, auto deferral increases, Qualified Default Investment Alternatives, Target Date Funds and flexible investment menu options.
As a plan sponsor, you have a fiduciary responsibility to regularly review and monitor your plan and to make sure your costs are reasonable. Reviewing participant demographics, investment menu choices, educational materials, fiduciary issues and provider services can help you manage fiduciary risk and optimize the value of this benefit for your employees.
I can assist you in reviewing your plan and help offer considerations to improve your plan's effectiveness for you and your employees and possibly even lower your costs. For more information on 401(k) plans and to receive a complimentary benchmarking review of your plan, please contact me.