Benchmarking 401k and 403b Record Keeper and Advisor Fees. End of year tasks for 401k and 403b plan sponsors may include benchmarking fees or going to market with an RFP (request for proposal) for major providers like record keepers and plan advisors. In my Vlog, I review:
- Why defined contribution (DC) plan sponsors should benchmark fees or go to market;
- Who should be benchmarked;
- How often;
- The difference between benchmarking and conducting an RFP; and
- Who plan sponsors can rely on to help.
It’s required under law to periodically benchmark fees as well as go to market and document that process. In light of growing lawsuits and heightened government scrutiny of DC plans, not going to market periodically can put plan sponsors at significant risk.