Why It Matters

 

Plan fiduciaries are expected to follow a prudent process when selecting and monitoring investments and service providers and to consider whether plan fees are reasonable in relation to the services being provided.

 

That does not necessarily mean selecting the lowest-cost option or changing providers regularly. The focus is on having a thoughtful review process and documenting the decisions you make.

 

Practical Ideas to Consider

 

✔ Are our plan fees still competitive?
Review recordkeeping, administrative, advisory, and investment-related costs in the context of the services being provided.

 

✔ Are our investment options still appropriate?
Consider whether the investment lineup continues to offer a reasonable range of choices at competitive costs.

 

✔ Are employees receiving value from the plan?
Look at participant education, technology, service levels, and other resources available to employees.

 

✔ Have our service needs changed?
As your company grows or evolves, the support you need from your recordkeeper, administrator, or advisor may change as well.

 

✔ Are we documenting our review process?
Keeping records of plan reviews, discussions, and decisions can help demonstrate an ongoing fiduciary process.

 

✔  It's Not Just About Cost

The lowest-cost option is not automatically the best option.

 

The goal is to evaluate the combination of cost, investments, service, technology, education, and fiduciary support and determine whether it remains appropriate for your plan and participants.

 

A Common Mistake We See

 

Employers sometimes assume that if a plan is working and no one is complaining, there is no reason to review it.

 

But a periodic benchmark can provide valuable perspective. Sometimes it identifies opportunities for improvement—and sometimes it simply confirms that your current arrangement remains appropriate.

 

A Simple Takeaway

 

👉 You do not need to change your retirement plan simply because you review it. The value of the review is knowing how your plan compares and documenting a thoughtful process.

 

If it has been several years since your retirement plan was formally reviewed, we can help you evaluate your current fees, investments, services, and fiduciary structure against today’s marketplace.

 

 

The Guardian 401(k) Advantage is a monthly newsletter that answers key questions and delivers practical ideas to help you make informed decisions, support your employees, and stay compliant.