Determining Retirement Plan Costs
July 30, 2012 at 6:21 pm Leave a comment
The International Foundation of Employee Benefit Plans has an article by Lowell Sun entitled “Tough To Tell How Much 401(k) Plans Really Cost” on their website. Located at http://www6.lexisnexis.com/publisher/EndUser?Action=UserDisplayFullDocument&orgId=2778&topicId=100023899&docId=l:1715608964&start=1&topics=single, the article discusses the upcoming fee disclosures. As noted by the author, it is particularly difficult with revenue sharing to determine actual costs. He also mentions abusive compensation arrangements that encourage higher cost investments. I agree with the author that the disclosures will help with greater transparency, but it will not cover all costs that Plan Sponsors should be concerned about.
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Entry filed under: Retirement. Tags: 401(k), 403(b), fee disclosure, fees, participant-directed, pension, retirement.
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