The Department of Labor says that monitoring fees is “an ongoing and important part of a fiduciary’s responsibility.”
Plan sponsors are frequently interested in what expenses can be paid from plan assets. The first step in that determination involves making sure that the plan document allows the payment of any expenses from plan assets.
Assuming that the plan allows it, the Department of Labor has divided plan expenses into two types: so-called “settler expenses,” which must be borne by the employer, and administrative expenses, which—if they are reasonable—may be paid from plan assets.
In general, settlor expenses include the cost of any services provided to establish, terminate, or design the plan. These are the types of services that generally are seen as benefiting the employer, rather than the plan beneficiaries.
Administrative expenses include fees and costs associated with things like amending the plan to keep it in compliance with tax laws, conducting nondiscrimination testing, performing participant recordkeeping services, or providing plan information to participants.
May 21, 2013
Plan Sponsors Continue to “Automate” Participant Decisions
Plan Sponsors Continue to “Automate” Participant Decisions
May 21, 2013 (PLANSPONSOR.com) – Plan sponsors are increasingly adopting features to help overcome participant inertia, a survey found.
Rebecca Moore
editors@plansponsor.com
Mesirow Financial Retirement Plan Advisory practice’s "2013
May 17, 2013
Morgan Stanley, ING Sued for Plan Services Alliance
Morgan Stanley, ING Sued for Plan Services Alliance May 17, 2013 (PLANSPONSOR.com) – An Alabama-based dermatopathology laboratory has filed a complaint regarding fees paid to its retirement plan broker. PLANSPONSOR staff editors@plansponsor.com In the lawsuit, filed in the U.S. District Court
May 03, 2013
Benchmarking Fees for Optimizing Plan Value
Benchmarking Fees for Optimizing Plan Value
May 3, 2013 (PLANSPONSOR.com) – Benchmarking plan fees can ultimately optimize the value of an employer’s retirement plan.
Rebecca Moore
editors@plansponsor.com
In its preamble of the ERISA Section 408(b)(2) service provider disclosure rules, the D
April 29, 2013
OCERS Adopts New Investment Fee Policy
OCERS Adopts New Investment Fee Policy
April 29, 2013 (PLANSPONSOR.com) – The Orange County Employees Retirement System (OCERS) has adopted a new investment management fee policy.
Kevin McGuinness
editors@plansponsor.com
“The OCERS fee policy provides clear guidance to the investment community