Genovese Burford & Brothers Blog
Read the latest posts from the Financial Advisors of Genovese Burford & Brothers.
As a sponsor to a 401(k) Plan, fiduciaries have a number of duties and one of the most important ones is to act in the best interest of plan participants and their beneficiaries. Another important thing for companies that sponsor a 401(k) Plan is to periodically set up a formal process of reviewing their plan and their service providers. While the Department of Labor does not have a formal requirement for doing Requests for Proposals (“RFP’s”) and benchmarking their 401(k) Provider, it is recommended that plan Committee’s conduct a formal RFP at least every 3-5 years. The size of your 401(k) plan likely increases every few years through employee contributions made by plan participants no matter what the market is doing. A larger plan size plan may warrant a reduction in your plan’s expenses. The RFP process allows the Committee to see if their 401(k) Provider is still providing competitive...