THE TOUGH QUESTIONS
In the absence of a powerful motivation, why would a busy, overworked plan sponsor undertake the additional effort associated with monitoring their retirement plan provider? There are a host of reasons, actually, but let’s consider three:
Availability – there is no better way to appreciate how good – or how bad – your current levels really are until you can compare them with what actually is available in the context of your
specific program needs and objectives.
The bottom line – just by looking around or making pointed inquiries of your current provider – you could unearth some surprising cost savings for your program and/or your bottom line. Sometimes, all you have to do is ask.
It’s the law – as a fiduciary, you are obliged to ensure that your program is established and maintained in the best interests of the plan participants and beneficiaries. They may not require that your program employs the snazziest technologies, but I certainly requires an evaluation of features, fees, and relative value – and on an ongoing basis, not just when the decision is thrust upon you.
It’s important to know what you are looking for before you begin this process. Define what a successful retirement plan is for the company and what is needed from a provider to make it successful.
This due diligence process will not only help establish that plan fiduciaries have met fiduciary responsibilities under ERISA, but also help improve 401(k) plan for the benefit of employees – a worthy end in itself.
To encourage the disclosure and review of more and better information about potential conflicts of interest, the Department of Labor and the SEC developed a set of questions to assist plan fiduciaries in evaluating the objectivity of the recommendations provided, or to be provided, by a pension consultant or investment advisor.
Click
here to view the list of questions | 
