Aug 16

401k Fees … Alarming Results

Results are in from PlanSponsor’s 2011 Defined Contribution Survey. Over 7,000 plan sponsors responded and 75% of those fell under the micro or small plans criteria, which is defined as assets under $50 million.

The results may alarm you…

51% of small and micro plan sponsors said they do not know what the average expense ratio is on their plans fund lineup. Remember, plan sponsors are required to know the fees their plan pays and if these fees are reasonable.

60% responded they do not know if their funds offer a “revenue sharing” arrangement that can be used to pay for plan administrative expenses.

59% responded they do not know if they have proprietary funds (i.e. same fund name as their record keeper).

Over 60% responded their plan does not have an investment committee.

Over 60% responded they do not have an investment policy statement.

Obviously bells should be ringing. How would you have answered these questions?

401k Plan questions? Contact LCM Capital Management at 312-705-3013 or at and have your plan analyzed and reviewed at no cost.

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