401k legislation is ever changing and the rules outlining the responsibilities of a "Fiduciary" are clear. The penalties for a fiduciary who has knowingly or unknowingly participated in an act that may be detrimental to an employees account can be severe. All too often, significant ancillary investment, recordkeeping, advisory, and administration fees are subtracted without Sponsors and Participants knowing the full extent of how their accounts are being reduced.  Starting in January 2012, new DOL legislation requiring detailed fee disclosure will go into effect to address the current inadequacy of the rules. Rules 408(b)(2), (effective April), and (404(a)(5), (effective within 60 days of rule 408(b)2), will finally enable Plan Sponsors and Participants to make informed decisions regarding Plan choices and allow for Plan comparisons like never before.  Plan Sponsors are obligated to ensure that their Plans will be in compliance with the rules, and, as previously mandated by the Pension Protection Act of 2006, that fees being charged are “reasonable”.   Inaction by a Plan Sponsor can expose a Plan Sponsor to unnecessary liability, including potential penalties and litigation.

 

We urge you to contact us now in order to assist you in the above. We will help you address your Company’s retirement plan needs and obligations.