OVERLAND PARK, KS — Konza Global Wealth Group has released new guidance for business owners on how to evaluate and benchmark their company’s retirement plan fees and governance practices.
As regulatory oversight of employer retirement plans continues to increase, plan sponsors are expected to demonstrate that plan fees are reasonable and properly monitored.
Benchmarking retirement plan costs is a key fiduciary responsibility under the Employee Retirement Income Security Act (ERISA).
What Is 401(k) Fee Benchmarking?
Fee benchmarking is the process of comparing a retirement plan’s costs and services to similar plans in the marketplace.
This helps plan sponsors determine whether participants are receiving competitive investment options and administrative services.
Costs typically evaluated during benchmarking include:
- investment expense ratios & revenue sharing arrangements
- recordkeeping fees
- advisor fees
- third-party administrator costs
Regular benchmarking helps ensure that plan costs remain reasonable relative to the services provided.
Governance Responsibilities for Plan Sponsors
Business owners serving as plan sponsors also have fiduciary responsibilities related to retirement plan governance.
Key governance practices include:
- maintaining an Investment Policy Statement
- conducting periodic investment reviews
- documenting fiduciary decision processes
- monitoring plan service providers
Establishing a clear governance structure can help reduce legal risk and improve employee outcomes.
The Role of a 3(21) Fiduciary Advisor
Many businesses work with a 3(21) fiduciary advisor to assist with retirement plan oversight.
A 3(21) fiduciary provides guidance and recommendations on plan investments while allowing the employer to retain final decision-making authority.
Typical responsibilities include:
- investment menu evaluation
- fee benchmarking analysis
- retirement plan design guidance
- participant education programs
By implementing structured governance processes and regular benchmarking reviews, businesses can strengthen their retirement plans while improving employee retirement readiness.
Konza Global Wealth Group provides advisory services for corporate retirement plans, helping business owners navigate fiduciary responsibilities while designing plans that align with employee financial goals.
