Negotiating Retirement Plan Fees with Your Provider

According to plan sponsors, one of the most harrowing aspects of their fiduciary obligations is to ensure that plan fees are reasonable. From administration and record-keeping to compliance and investment management, how can a plan sponsor feel assured that they are aware of all plan fees, understand them thoroughly and then determine their fair and reasonableness? It’s quite a task!

Best practices dictate fee bench-marking as a valid method of determining fee reasonableness. Once produced, that analysis serves as documentation of the plan fees falling within a reasonable range. Or does it? What happens when the data shows that your plan provider’s fees are higher than the other providers utilized by your peers? Even though your provider may be meeting your plan needs and service expectations well, you may be concerned when the analysis demonstrates that your plan fees are outside of range and significantly higher than plans who may be using other providers. In this situation, consider engaging in a fee negotiation with your provider. As is the case anytime you fee negotiate, the process can be tricky. As your dedicated plan consultant, we are uniquely qualified and proud to undergo this cumbersome and complex task for you on a regular basis so that you feel confident in meeting your fiduciary obligation to ensure your plan’s fees are fair and reasonable.