Fee Analysis & Benchmarking
 
More Details

Employers must ensure that fees paid to service providers and other expenses of the plan are reasonable in light of the level of service and quality of services provided;

Department of Labor, “A Look at 401k Plan Fees”

Request For Proposal (RFP) Management

More Details

"Unless they possess the necessary expertise to evaluate such factors, fiduciaries would need to obtain the advice of a qualified, independent expert."

[DOL Reg. § 2509.95-1(c)(6)]

Investment Fiduciary Services 

More Details

In Liss v. Smith, the court said, "where the trustees lack the requisite knowledge, experience and expertise to make the necessary decisions with respect to investments, their fiduciary obligations require them to hire independent professional advisors."

[991 F. Supp. 278, 297 (S.D.N.Y. 1998)]

Employee Education & Advice 

More Details

2006 Employee Retirement Confidence Survey, published by the Employee Benefits Research Institute, shows workers continue to have unrealistic expectations.  The following is a partial summary of the findings:

Modest savings: More than half of workers (52 percent) saving for retirement report total savings and investments (not including the value of their primary residence or any defined benefit plans) of less than $50,000.

Unrealistic Replacement Ratios: Worker suppositions about their financial needs for retirement are often based on what appear to be unrealistically low income replacement ratios. Half of workers think they can maintain a comfortable retirement on 70 percent or less of their pre-retirement income.