Continued Attention to Retirement Plan Fees
Be ready for more of the same regarding attention to fees charged plan sponsors and participants. That is the 2016 prediction of Susan Mangiero, a certified Financial Risk Manager, Accredited Investment Fiduciary Analyst, Certified Fraud Examiner and Professional Plan Consultant.
In her blog, Pension Risk Matters, Mangiero argues
that this is not only because retirement plan fees are an important topic, it is also because there is litigation concerning it.
Mangiero notes that not only are there suits over fees charged 401(k) plans, there are also are lawsuits concerning on fees paid by government pension plans and ERISA defined benefit plans. She adds that “in the public sector, a confluence of political pressures, funding deficits and cash squeezes are forcing fees and transparency to the top of the list for trustees.”
Less clear for 2016, Mangiero writes, is whether fee disclosures will be similar enough in nature for it to be possible to compare and contrast them. “When reporting standards vary across organizations, the result can be a confusing melange of numbers that cost a lot to put together but don't help the user. Besides ambiguity, unexplained price bounces can be likewise hard to grasp,” she says.
Mangiero encourages those” that do a terrific job in vetting fees and communicating this information to participants” to keep up the good work, adding “For those in need of improvement, there's no time like the present to get started.”