Hi Sean Menke - the DOL has guidelines of best practices that should be followed by all Plan Sponsors and Employers. Benchmarking for ALL providers in a 401(k) plan should be done at least every 3 years, if the plan is under $10M in assets. Every other year if the assets are $10M - $100M. And year year if the assets over $100M.
I hope this helps! Please reach out with any other questions
That's a great question and while the DOL suggestions have been stated, best practices dictates that you utilize a "live", go-to-market, evaluation process to determine fee reasonableness. (Do not rely on your current providers to tell you your fees are reasonable.) Fees have come down a lot in the past few years and it benefits the entire organization by going thru this process. I'm happy to assist if anyone has additional questions.
The DOL suggestion is the minimum criteria are you trying to provide a BENEFIT or just check a box. To many providers just want the investment side and provide little to no extras.
What else are they providing?
- Financial Literacy (teaching true financial concepts) beyond the annual Open Enrollment talk?
- Complimentary, Confidential, and Comprehensive Planning for every employee?
- 1 on 1 Counseling at no extra cost for ALL employees not just high dollar investors (NO 1-800 number)
The best Investments, the best fees, the best service and the best opportunity for the Employee to get to where he/she is trying to get to in retirement.
Would love to help anybody provide to their employees like nobody else is.