There is no better time than right now to shop your company qualified retirement plan. Regulations are changing daily and your employees deserve a top quality plan for them to successfully retire. You should ask yourself a question, are all of my employees on track to successfully retire? Avoid learning the answer after it is too late.

1. Fee disclosure is here.   The plan fees that are in place on July 1, 2012 will be disclosed to your employees.

Seven in ten participants are completely unaware that they pay any fees at all to maintain their account.* Lower your fees and lessen the shock to your employees.

2.  More ways to get advice

The fate of millions of American’s retirement is dependent on the strength of their investment decisions, as 401(k) plans have far surpassed defined benefit pension plans.  

While you’re shopping – pick up an advisor who is able to give advice. Workers who received some form of help enjoyed average annual returns that were 3 percent better than workers handling their own accounts, according to the benefits consulting firm Aon Hewitt.

At the end of December 2011, the Department of Labor began allowing advice to be given by retirement plan advisors who meet one of two requirements: 1. The fees they receive must not vary 2. The advice must be generated from a computer model that’s been verified as unbiased.

3. Do it now. You’re going to have to do it anyway.
The new law requires you determine your plans “reasonableness.”  The best way to do this is to shop it.

The Department of labor recommends plan sponsors seek competitive bids on their company sponsored retirement plan every 3 to 5 years. This is not a requirement but is highly recommended. There are new alternatives that will reduce fiduciary risks and improve participant results.

Please comment or call to discuss how this affects you and your company.