OUR THOUGHTS ON:

The Downside to Increased Fee Disclosure Requirements

ERISA

By Todd Lucas

Most people tend to agree that the increased fee disclosure for defined benefit and defined contribution plans required under Employee Retirement Income Security Act (ERISA) 408(b)(2) is a good thing for plan participants. With retirement plan providers required to disclose the fees associated with operating retirement plans, participants can now see how much in fees they are truly paying.

One concern has arisen regarding some providers lowering their fees and adjusting their services accordingly. This potential trend leads to an interesting dilemma: as plans and service providers compete for lower costs, will the level of service provided also be lower? With plan features and investment options being more complex, a potential move towards lower-cost plans could be the result, and just when more service, not less service is needed.

Now that fees associated with retirement plans are being disclosed, fiduciaries might feel more pressure than ever to ensure that plans are getting the best possible service for the best or most reasonable price.

© 2013 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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