Nearly everyone agrees 401(k) plan sponsors should measure their plans against their peers using independent and credible benchmarks (see "Benchmarking: The Key to a 401(k) Plan Sponsor's Fiduciary Compliance Review," FiduciaryNews.com, January 24, 2012). Such a self-assessment, conducted periodically, can help 401(k) plan sponsor reduce the risk of personal fiduciary liability and help build a better retirement plan by identifying what the plan sponsor does well, what needs to be improved and what needs to be changed or eliminated.

But if benchmarking is such a great idea, why do so few 401(k) plan sponsors actually do it? Don't plan sponsors use similar techniques in other areas of their organization? Isn't self-assessment one of the hallmarks of good business practices? What's holding back otherwise competent executives from undertaking a standard procedure on one of the most important benefits they provide employees?

Two reasons appear to be the cause of this managerial omission. First, for too many 401(k) plan sponsors, monitoring their 401(k) plan just isn't in their job description. Yes, they're responsible for the plan, but the same kinds of objectives, action items and evaluation criteria they use for their primary function doesn't appear anywhere in their personnel performance review materials? Face it, their 401(k) duties represent merely a part-time job that doesn't pay them anymore if they perform related tasks or if they don't. This is particularly true for smaller companies. They can't afford to pay personnel dedicated to managing employee benefits.