Retirement Plan Service Providers – When the Cheapest Option May Not Be the Least Expensive
Written By Mike Szyperski
Recent regulations related to fee disclosure have prompted a renewed focus on the amount plan sponsors are paying for services related to their retirement plans. When choosing a service provider, or "shopping around" to determine if their current fees are reasonable, plan sponsors may be tempted to give considerable weight to the cheapest option. Often overlooked, however, are the costs associated with utilizing an inferior service provider such as poor plan design or inaccurate compliance testing.