Retirement Plan Fees - The Standard

R e t i R e m e n t p l a n s Plan Sponsor’s Guide to Retirement Plan Fees © 2007 StanCorp Equities, Inc. StanCorp Equities, Inc., member NASD/SIPC, distributes group variable annuity and group annuity contracts issued by Standard Insurance Company and may provide other brokerage services. Third party administrative services are provided by Standard Retirement Services, Inc. Investment advisory services are provided by StanCorp Investment Advisers, Inc, a registered investment advisor. StanCorp Equities, Inc., Standard Insurance Company, Standard Retirement Services, Inc., and StanCorp Investment Advisers, Inc. are subsidiaries of StanCorp Financial Group, Inc. and all are Oregon corporations. Today’s plan sponsors face the challenge of providing plan governance in an increasingly complex marketplace. For example,

there are now more than 8,000 investment companies offering over 15,000 funds. 1 In addition, government regulations that interpret plan-related legislation are continually being refined and updated. Recently the public spotlight has turned to retirement plan fees. Plan sponsors are being reminded of their fiduciary responsibility to accurately determine and evaluate their plan fees. Because of the multiple providers involved and the various ways fees are assessed, it can sometimes be difficult to determine who is receiving how much, and for which services. Yet that information is necessary to determine if plan costs are fair and reasonable. Inside Page Reviewing fiduciary responsibility 1 Fee chart 3 How plan fees are structured 4 Locating hard-to-find fees 5 Questions to ask 7 Resources 7 Glossary 8 This guide will provide you with information about retirement plan services and fees to help you more accurately calculate your plan costs and determine whether they are a good value for you and your participants. 1 Investment Company Institute (ICI) 2006 “Fact Book.” A guide to retirement plan fees 1 Plan sponsors know that they have a legal obligation, as defined by the Employee Retirement Income Security Act (ERISA), to make decisions that are in the best interests of their participants. They are considered plan fiduciaries and as such assume corporate and personal responsibility for the decisions they make. These decisions always require ongoing oversight and review and may include appointing an investment committee, choosing plan providers and selecting investment options. In addition to the fiduciary responsibilities specifically outlined in ERISA, 2 recent court decisions strongly suggest that plan sponsors also have some responsibility to help participants save enough for retirement. As a result, plan sponsors are assuming an increasingly active role in encouraging employees to enroll in their plans, and helping them choose adequate deferral levels and appropriate investment options. This is where plan costs become a critical component. Expenses associated with legal counsel, investment consultants, recordkeepers, fund offerings, trustees, auditors, and other paid providers are usually considered plan costs. These costs, in turn, have an impact on bottom-line returns for participants and can ultimately affect the amount of money participants accumulate for retirement. Plan sponsors have a fiduciary obligation to know the total costs of operating a plan. Although they are not required to choose the least expensive services, they do need to know who is receiving money — how much and for what...

Website: www.standard.com | Filesize: 137kb
No of Page(s): 16
Download Retirement Plan Fees - The Standard.pdf