401(k) plan sponsors must hold their plan provider(s) to task - if it is not done well and documented - the Supreme Court says you (and your management) are personally liable!
Job #1: ***TRANSPARENCY***
Click here to Request Transparency Tool by e-mail.
The "transparency tool" is the "Retirement Plan Service Provider and Intermediary Annual Disclosure Document".
This is perfect timing - plan sponsors are not ready for 408(b)(2) fee disclosure and this helps you prepare.
Click here to read an excellent (brief) article by ERISA attorney Ary Rosenbaum about plan sponsors preparing for 408(b)(2) fee disclosure.
The primary culprit: 12b-1 fees.
12b-1 fees flow from mutual funds behind-the-scenes. This makes it difficult to track fees AND providers as Ary mentions in his blog. To ask a provider of services in your 401(k) plan to disclose, you first must identify each one! There are mutual fund companies, brokers/advisors, a custodian, third party administrator and the record-keeper. And possibly more.
The person (or their employer) that sold you the plan may be the proverbial "fox in the hen house"!
Use the disclosure statement to objectively assess what is going on.
Since 99% of the plans are not transparent....well now you know why the Dept of Labor is implementing 408(b)(2) fee disclosure - and requiring the plan sponsor to communicate the disclosure to the participants.
It's about to get very interesting (i.e. painful) folks! Don't wait for the government mandate, get transparency NOW by either moving to a transparent source or demanding it from your current provider.
