The retirement plan you sponsor comes along with some serious responsibilities. Among those is the duty to understand and evaluate fees paid on behalf of the plan. You may use benchmarking data to determine whether those fees are reasonable.
That’s a good start, says Jonathan Baltes, CEO of QPSteno, an organization that is taking fee evaluation to a deeper level. The firm started, he says, because of the recognition of one simple truth: Two covered service providers (who each must legally report to the plan the compensation they receive) may be charging the same fees, but one may have significantly more experience and spend significantly more time on your plan than the other.
It dawned on Baltes and his partner, Matthew Hunter, that covered service providers need a way to demonstrate their value to their retirement plan clients. And at the same time, plan fiduciaries could use the same information to evaluate ‘reasonableness,’ an important factor in meeting their fiduciary responsibilities.
Read more here.