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.

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