10 Strategies to Optimize Plan Fees

ERISA requires plan fiduciaries to ensure fees are reasonable on an ongoing basis while having a documented process to show for it. Here are 10 strategies to optimize your plan economics.


  1.  Negotiate fixed recordkeeping and/or advisory fees
  2.  Document your fees each quarter
  3.  Benchmark your fees annually
  4.  Eliminate varying levels of compensation for service providers that can create conflicts of interest
  5.  Use the lowest cost share classes for which your plan qualifies
  6.  Decide whether to allocate direct plan costs on a pro-rata or per capita basis
  7.  Track the trend line of your fees over time
  8.  Use an ERISA Budget Account (EBA) to capture any revenue sharing payments and offset plan expenses
  9.  Provide your participants with a personalized fee calculator to help them clearly understand the fees they pay
  10.  Gather informal bids from the marketplace or conduct a full-scope RFP every few years or when material changes to your assets or number of participants occur
Looking for more?

We are dedicated to helping our clients develop benefit plans that fit the needs of the business owner, focus on company goals, and help employees feel confident in their financial future. For more information on our retirement consulting services along with our (k)larity @ Work™ financial wellness programs check us out at www.greenspringadvisors.com or give us a call at 443-564-4600.

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

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