Low cost retirement plans aren't necessarily the best options for smaller plan sponsors, according to executives at Security Benefit Corporation. They caution business owners and 401(k) plan participants to avoid a 'fee race to the bottom' as the Department of Labor's new participant-level fee disclosure rules take effect today.
The company's retirement experts are concerned that the fee disclosure rules will lead to an outsized focus on cost at the expense of value.
The new rules, which apply to 401(k), 403(b) and profit-sharing plans covered by the Employee Retirement Income Security Act, will help plan sponsors understand the services received from providers and to determine the reasonableness of the costs incurred as well as providing more detail about administrative fees to participants.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
