Benefits of Building a Fiduciary Firewall℠
- Reduce day-to-day administrative burden and headaches.
- Manage fiduciary risk through proactive diagnostics and compliance.
- Improve participant investment returns up to 3% per year.
- Reduce fees for Basic Plan Services 25% - 60% versus leading providers.
- Increase the value of accounts by 30% - 49% over twenty years.
- Protect plan sponsor & trustees with affirmative fiduciary indemnification. Read more about the FFC advantage.
Identify and Control Your 401(k) Plan's Fees
The obligation to document, monitor, and control 401(k) fees and make sure that they are reasonable is a core fiduciary duty which you cannot delegate.
- Since 1974 plan fiduciaries have had a legal obligation to document and monitor fees.
- However, the law did not require 401(k) providers to disclose this information.
- In July 2012, fee disclosure regulations (ERISA §408(b)(2)) are going into effect that will require 401(k) providers to fully disclose this information for the first time.
Receiving 401(k) fee disclosures from your service provider does not satisfy your legal obligation to organize and analyze this data. You are still required to periodically make a formal and documented determination if your company's 401(k) plan fees and the compensation being received by the plan's service providers are reasonable. Learn more about our 401(k) Fee Audit and 408(b)(2) Compliance analysis.
Fiduciary Services Improve Plan Performance
In September 2011 AonHewitt released the results of a study that documented a 2.92% annual investment performance boost for participants who take advantage of "formal investment help” offered within their plan.
Learn about our Total Fiduciary Solution 401(k)℠ and how it can help improve participant outcomes while providing plan fiduciaries with affirmative fiduciary indemnification.
