Managing a company retirement plan today is more complex than ever. New rules, rising fees, and increasing fiduciary expectations are creating pressure many plan sponsors don’t see coming. After reviewing hundreds of plans over the years, three risks show up more than any others — and all three are avoidable.
- Outdated Fiduciary Governance
Many companies hold committee meetings but fail to document decisions. Under ERISA, “documentation is protection.” A missing agenda or meeting summary can be interpreted as no oversight at all.
Quick fix: Create a simple 1-page meeting template and use it every quarter.
- Fees That Haven’t Been Benchmarked in 3+ Years
Market changes, recordkeeper consolidation, and new share classes have drastically changed what plans should be paying. If you haven’t benchmarked fees since before 2022, you’re likely paying more than you need to.
Quick fix: Conduct an independent benchmarking review — even small plans are seeing double-digit savings.
- Low Employee Engagement
Participation rates have fallen at many companies post-COVID. Low engagement isn’t just bad for employees — it increases fiduciary risk and can lead to failed nondiscrimination testing.
Quick fix: Employee education and simple plan design tweaks (auto-enroll, auto-escalate, adding a qualified default investment alternative with strong outcomes) often increase savings without increasing employer cost.
Final Thoughts -
A strong retirement plan isn’t just a benefit — it’s a recruiting tool, a retention strategy, and a fiduciary obligation. Addressing these three risks now can prevent expensive problems later.
If you’d like a quick, no-obligation review of your plan, I’m happy to help.
- Robert C. McKeon | (630) 810-9100
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