As a fiduciary, overseeing the fees and expenses within your company’s retirement plan is a vital responsibility. The Employee Retirement Income Security Act (ERISA) requires that plan fees must be reasonable for the services provided. The goal isn’t to select the cheapest option; it’s to protect participants from unnecessary costs.
Why Fee & Expense Oversight Matters
Plan fees have a significant impact on retirement outcomes, but low fees aren’t the only consideration. Benchmarking fees regularly is essential — not just to keep costs competitive, but also to ensure the services provided offer real value for participants. A higher-cost plan might still be reasonable if it delivers meaningful benefits and support.
By promoting transparency and helping participants understand the balance between costs and services, plan sponsors can build trust and support participants’ long-term financial confidence.
Risks to Plan Health
- Neglecting to monitor plan fees and expenses can expose both sponsors and participants to significant risks, such as:
- Unreviewed fees can lead to unnecessary participant expenses.
- Hidden revenue-sharing may unfairly increase costs.
- Skipping fee benchmarking raises fiduciary litigation risk.
- Poor or unclear disclosures can cause participant confusion and distrust.
At CBIZ, we help you stay proactive and support your retirement plan and participant trust with thorough fee reviews and clear disclosures.
The CBIZ Prescription for Success
CBIZ takes a thorough and practical approach to fee and expense oversight. We start by benchmarking your plan fees periodically, comparing your costs to industry standards to make sure your plan stays competitive. We review major aspects of your plan’s fees, including administrative, investment, and advisory costs, to help determine if pricing is fair and reasonable.
Ensure your plan fees are reasonable. Request a personalized retirement plan benchmark assessment today.
Investment advisory services provided through CBIZ Investment Advisory Services, LLC, a registered investment adviser and a wholly owned subsidiary of CBIZ, Inc.
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“CBIZ” is the brand name under which CBIZ CPAs P.C. and CBIZ, Inc. and its subsidiaries, including CBIZ Advisors, LLC, provide professional services. CBIZ CPAs P.C. and CBIZ, Inc. (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. CBIZ CPAs P.C. is a licensed independent CPA firm that provides attest services to its clients. CBIZ, Inc. and its subsidiary entities provide tax, advisory, and consulting services to their clients. CBIZ, Inc. and its subsidiary entities are not licensed CPA firms and, therefore, cannot provide attest services.
