Comparing Proposals and Benchmarking Expenses

How do you select a plan provider? How do you know if your plan’s fees and expenses are “reasonable”?

Understanding Fees and ExpensesFiduciary guidelines dictate that a plan sponsor must control expenses and offer a diversified selection of investment options.  Most companies do not have a system in place for ensuring their plan compares favorably against industry averages for expenses, investment options and investment selection. It may not be in the interest of an incumbent one-stop-shopping provider to benchmark your plan against competitors. The Department of Labor wants you to understand how to evaluate retirement fees and expenses.

Envision 401k Architects focuses on helping participants and plan stewards pursue success while reducing the workload of both. We want to help you get the results you want, without getting you bogged down in complex rules and regulations. We discussed using an investment manager in Managing Liability. You may seek  to reduce your investment management risk through:

  • A discretionary trustee.
  • An independent fiduciary.
  • An independent registered investment manager

Leveraging our plan analysis, we will help you determine the best path for you.  Then we’ll provide recommendations to help you select an investment manager.

How Revenue Sharing Can Work
How Revenue Sharing Can Work

Our  Due Diligence Review™ tool provides a process to help you understand how to narrow the provider choices, and compare them on a level playing field. We’ll benchmark your existing provider services and expenses against industry averages. In the end, you will receive a fully documented summary detailing your selection process and comparison analysis.

Your responsibilities don’t end here. The rest of the Build section details your responsibility to educate your plan participants. We’ll show you how we can help with that, too.


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