PLANSPONSOR - November - December 2023 - 17

A
Art by James Yang
Watching
every plan
expense
to achieve
APPROACH
COSTthe
optimal
result
CONSCIOUS
A
mid recordkeeper consolidation, lessening investment costs, the rise
of pooled employer plans and technological
expenses continue to decline.
innovation, 401(k) fees and
Investment costs, which comprise more than 40% of plan expense on average,
says the " 401(k) Averages Book, " slipped an average of 0.03% last year. Total plan costs,
which include recordkeeping and administration fees, as well as revenue-sharing,
equaled 1.09% of assets, down from 1.17% in 2018.
Meanwhile, nearly eight in 10 defined contribution investment-only asset
managers said they are focused on lowering expenses on key products, according to a
recent study by Sway Research. Some approaches they are taking are to increase their
passive management capabilities, launch new collective investment trusts with lower
fees and discount prices for certain recordkeepers.
As such trends make their way to market, sponsors must pay attention to
ensuring the rates they-and their participants-are paying evolve as well. For sponsors,
keeping expenses in check is an important factor in helping prepare participants
for retirement and in sponsors fulfilling their fiduciary responsibility to manage fees.
While some recordkeepers are proactive in reducing plan costs, the onus remains
on plan sponsors to regularly benchmark their fees to get a perspective beyond that of
the single vendor, according to Richard Reed, vice president and defined contribution
practice director at the Segal Group in Boston. Failing to do so could create a liability
that opens plans up to potential lawsuits.
" There's no silver bullet that's going to keep a sponsor from getting sued-we
PLANSPONSOR.COM November - December 2023 17

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PLANSPONSOR - November - December 2023

Table of Contents for the Digital Edition of PLANSPONSOR - November - December 2023

INSIGHTS
PARTICIPANT ANALYSIS
RULES & REGULATIONS
UPFRONT
A Cost-Conscious Approach
Exploring the Choices
2023 PLANSPONSOR Service Stars
PLANSPONSOR Roadmap
A Thorny Issue
Take Under Advisement
A Repair Guide for Errors
FIDUCIARY FORUM Annual Notice Season
NSIDE ANGLE An Influential Opinion
PLAN PROFILE A Focus on Wellness
PLANSPONSOR - November - December 2023 - Cover1
PLANSPONSOR - November - December 2023 - INSIGHTS
PLANSPONSOR - November - December 2023 - 1
PLANSPONSOR - November - December 2023 - 2
PLANSPONSOR - November - December 2023 - 3
PLANSPONSOR - November - December 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - November - December 2023 - 5
PLANSPONSOR - November - December 2023 - RULES & REGULATIONS
PLANSPONSOR - November - December 2023 - 7
PLANSPONSOR - November - December 2023 - 8
PLANSPONSOR - November - December 2023 - 9
PLANSPONSOR - November - December 2023 - UPFRONT
PLANSPONSOR - November - December 2023 - 11
PLANSPONSOR - November - December 2023 - 12
PLANSPONSOR - November - December 2023 - 13
PLANSPONSOR - November - December 2023 - 14
PLANSPONSOR - November - December 2023 - 15
PLANSPONSOR - November - December 2023 - A Cost-Conscious Approach
PLANSPONSOR - November - December 2023 - 17
PLANSPONSOR - November - December 2023 - 18
PLANSPONSOR - November - December 2023 - 19
PLANSPONSOR - November - December 2023 - Exploring the Choices
PLANSPONSOR - November - December 2023 - 21
PLANSPONSOR - November - December 2023 - 22
PLANSPONSOR - November - December 2023 - 23
PLANSPONSOR - November - December 2023 - 2023 PLANSPONSOR Service Stars
PLANSPONSOR - November - December 2023 - 25
PLANSPONSOR - November - December 2023 - 26
PLANSPONSOR - November - December 2023 - 27
PLANSPONSOR - November - December 2023 - PLANSPONSOR Roadmap
PLANSPONSOR - November - December 2023 - 29
PLANSPONSOR - November - December 2023 - 30
PLANSPONSOR - November - December 2023 - 31
PLANSPONSOR - November - December 2023 - A Thorny Issue
PLANSPONSOR - November - December 2023 - 33
PLANSPONSOR - November - December 2023 - Take Under Advisement
PLANSPONSOR - November - December 2023 - 35
PLANSPONSOR - November - December 2023 - A Repair Guide for Errors
PLANSPONSOR - November - December 2023 - 37
PLANSPONSOR - November - December 2023 - FIDUCIARY FORUM Annual Notice Season
PLANSPONSOR - November - December 2023 - NSIDE ANGLE An Influential Opinion
PLANSPONSOR - November - December 2023 - PLAN PROFILE A Focus on Wellness
PLANSPONSOR - November - December 2023 - Cover3
PLANSPONSOR - November - December 2023 - Cover4
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https://www.plansponsordigital.com/plansponsor/april-may_2021
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