Aug 10

The Year of the Fiduciary -August 2011- “The Quandary”

Consulting firm Tower Watson surveyed plan sponsors and found “77% of them stated that the greatest challenge they face over the next few years: identifying retirement benefit costs.”

Aon Hewitt recently conducted a survey of plan sponsors and this is what was found:
 Fees and expenses were rated the most important factor when it comes to selecting
funds
 For the past two years, employers are seriously concerned about the fees they pay
given recent scrutiny by regulators and litigators. Aon Hewitt’s analysis continues with, “the percentage of plans that have calculated their total plan costs (fund, administrator, trustee, etc.) has steadily declined since 2009 – the main reason, complexity.”

In our January 2011 Blog, we reminded all plan administrators what their fiduciary
responsibilities are to their plan participants. Consider just one of them; “you must insure that no more than reasonable compensation is paid for your plan services, taking into account all fees including funds, any revenue sharing, administrative, trustee, etc.”

So LCM Capital Management’s simple question of the year is, “how can plan administrators
identify the fees their plan pays, when they acknowledge their number one issue is
complexity and ability to identify plan fees?”

To quote Bono of U2 “I still haven’t found what I’m looking for.” Now you understand why
we titled this month’s Blog “The Quandary.”

According to the Tower Watson survey most plan sponsors generally wait until compliance
issues emerge rather than take action to avert them.

Why wait for compliance issues to emerge when you can email LCM Capital Management
today at LCM@lcmcapital.com for your free retirement plan cost analysis? See what you’re
not being shown and take the complexity out of your fiduciary responsibility.

Source: LCM Capital Management, our Retirement Plan and Wealth Management Advisors.

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