Irrespective of who is to credit–or blame–in forcing sponsors to reconsider how to pay for recordkeeping, data compiled in the Plan Sponsor Council of America's Annual Survey of Profit Sharing and 401(k) Plans shows employers are acting, particularly at the large plan level.(Photo: Shutterstock)

A white paper recently published by Vanguard exploring how defined contribution plans can pay for recordkeeping and other plan services noted an “increased scrutiny” in how fees are allocated.

Clearly, more than a decade's worth of lawsuits brought against large retirement plans is motivating sponsors' reconsideration, though Vanguard says regulatory requirements are also pushing the trend.

Central to the claims in those lawsuits is that a pro rata structure of assessing recordkeeping fees, where participants pay a basis point percentage of assets in an account, is a per se fiduciary breach under the Employee Retirement Income Security Act.