This JavaScript enables OnlineOpinion, a method for collecting secure feedback data.
Contact Us
Bonnie Fawcett
412-762-2405
bonnie.fawcett@pnc.com
Feedback
Replay Video
Replay Video

Want to learn more? Check out the following content.

Confirming 401(k) Expenses are Reasonable

As you know, fiduciary responsibility under ERISA is very important to 401(k) plan sponsors. Fiduciaries have significant responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. Ensuring that disclosures are adequate and that plan fees and expenses are reasonable are two aspects of these responsibilities.

« Return to Feature


Confirming 401(k) Expenses are Reasonable

BENCHMARKING TO HELP ENSURE THAT 401(K) EXPENSES ARE REASONABLE

As you know, fiduciary responsibility under ERISA is very important to 401(k) plan sponsors. Fiduciaries have significant responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. Confirming that fee disclosures are adequate and that plan fees and expenses are reasonable are two aspects of these responsibilities.

I’m Bonnie Fawcett, Senior Vice President and Managing Director of the Vested Interest® Defined Contribution Program at PNC Bank.

As you’re aware, two sets of U.S. Department of Labor fee disclosure regulations went into effect in 2012 to help ensure that retirement plan sponsors and plan participants have adequate information to evaluate the value of services received for the fees paid.

As part of the Department of Labor’s 408(b)(2) regulation, you will need to verify that you have received fee disclosures from all plan covered service providers.

The 404(a)(5) regulations require plan administrators to disclose certain plan- and fee-related information to plan participants. You must also confirm that disclosures are adequate under new rules and that fees paid are reasonable based on the investment options and services being provided.

Your fee disclosure review presents an opportunity for you to take a good look at your current program to make sure it’s meeting objectives — those you’ve established for your 401(k) plan, as well those of your participants. Cost is important, but it’s only one of the criteria you need to evaluate. You need to assess the quality and type of services provided, as well as compare investment products and options on the basis of expenses and investment performance.

Once you’ve evaluated these aspects of your plan, you need some way to compare your plan and expenses with those of your peers. (Pause, change in thought) Your retirement plan provider, along with your ERISA counsel, can be helpful.

Benchmarking against comparable organizations’ plans is often the most costeffective and least disruptive method to determine whether fees are reasonable.

It involves comparing your plan to a group of organizations that resemble your own. A thorough benchmarking process will balance fee components and value components – a comprehensive approach that provides the context needed to truly assess the reasonableness of a plan’s fees. A thorough, objective benchmarking process should determine:

• How your plan costs compare with those of your peers

• Whether your plan costs are reasonable based on the level of service

• If the plan offers participants a diversified choice of investments

• Whether the plan is performing as designed

The results of the benchmarking process should help you determine if you need to update any component of your plan, and just as important, could improve your plan’s success.

For more information about benchmarking value and fees, or other aspects ofretirement plan administration and compliance, please contact me using theinformation on the next screen.

Thank you for your time and attention.


 
Additional Assets There are no upcoming events. Please check back soon.
Title Description Subject Area
Motivating the Millennial GenerationThe millennial generation is gaining a larger share of the labor market.
The Millennial generation is gaining a larger share of the labor market. The Bureau of Labor Statistics estimates that Millennials —the 54 million people born after 1982 — will account for 34% of the labor force by 2024.
Manage AssetsRead Now »
A New Approach To GrowthUpsetting the apple cart
Harvard Business School professor Clayton Christensen describes disruption as the process in which a smaller company with limited resources successfully challenges more established and larger industry leaders. He notes that disruption "displaces an existing market, industry or technology and produces something new, more efficient and worthwhile."
Manage AssetsRead Now »
Time to Look for a New Retirement PlanTime to look for a new retirement plan
An RFP helps you identify the best provider for your needs.It also plays a critical role in fulfilling the fiduciary responsibility of acting prudently and for the exclusive benefit of plan participants and beneficiaries, and serves as a written record of the systematic process behind the selection of your plan service provider.
Manage AssetsRead Now »
Healthcare Trends To Watch This YearHealthcare trends to watch this year
Healthcare in the United States continues to evolve as the Affordable Care Act (ACA) reaches its six-year mark. New regulations, cost containment measures, technological advancements and shifting demographics are altering the $3.2 trillion healthcare sector in ways never before imagined.
Manage AssetsRead Now »
Seven Principles of a Family BusinessTransferring the seven principles of a successful family business
The family business can be a central part of a family’s identity. Indeed, for many business owner families, the business represents a way of life for all family members, particularly those involved in its day-to-day activities. But what happens to the family when the family business is sold?
Manage AssetsRead Now »
The Circular Global Supply ChainThe circular global supply chain 
Worldwide consumer demand for products remains strong, driven by a rising middle class and growing world population. The World Economic Forum reported that more than 3 billion new middle-class consumers will enter the global economy by 2030, most from emerging market countries.
Manage AssetsRead Now »
Human-Machine CollaborationHuman-machine collaboration transforms the workplace 
Cognitive computer technologies are accelerating so rapidly that soon the workplace will be irrevocably changed.  Corporate leaders are now viewing machines as talent to be fostered for continuous innovation and effectiveness.
Manage AssetsRead Now »
Bridging Millennials' Skills Gap Bridging millennials' skills gap in global organizations
Today’s global workplace is changing: Baby Boomers are retiring, Generation Xers are assuming leadership positions, and Millennials are entering the workplace. By 2020, Millennials, people born between the mid-1980s and the early 2000s, will comprise 50% of the global workforce.
Manage AssetsRead Now »
Generational Divide in the Workplace Generational divide in the workplace and its impact on plan participation
Generational differences in the workplace may be one reason that many plan sponsors find their efforts to boost plan participation rates and contribution levels fall short. The message and delivery medium of communication and education initiatives may be more effective when crafted in a manner that is relevant to the unique personality and needs of each generation.
Manage AssetsRead Now »
Retirement Planning ChallengesRetirement planning challenges for companies and employees
Many American workers are not prepared to retire, no matter what age.  Despite employers’ best efforts to engage employees in their retirement readiness, many workers have not enrolled in employer-sponsored retirement plans, or only participate at limited levels.
Manage AssetsRead Now »
Workplace Wellness ProgramsWorkplace wellness programs: What's the real ROI?
Employee wellness programs are a $6 billion industry in the United States.  These programs have been touted for helping employees improve their health and prevent disease while lowering healthcare costs. Approximately 50% of all companies with 50 or more employees now offer wellness programs.
Manage AssetsRead Now »
The Internet Connects The WorldThe internet of things connects the world 
It may be hard to believe, but the term the "Internet of Things" (IoT) was first coined back in 1998. The concept of the Internet connecting any device with an on/off switch to people and other devices may have seemed futuristic at the end of the last century.
Manage AssetsRead Now »
The Factory Of The FutureIndustry 4.0 and the factory of the future
It’s not your father’s factory anymore.  Manufacturing is in the early stagesof a dynamic transformation, one that integrates equipment with cyber systems to monitor physical processes and communicate in real time with other systems, equipment and humans — both within the factory and across the supply chain.
Manage AssetsRead Now »
InterconnectedInterconnected: The global flow of goods, services, money, people and data
Some experts claim that globalization’s golden era ended with the worldwide financial crisis. But others contend that globalization is evolving into version 2.0: the acceleration of the global flows of goods, services, money, people and data across borders, increasing the interconnectivity of the global economy.
Manage AssetsRead Now »
Technology and the Flexible WorkforceTechnology and the flexible workforce
The workplace is undergoing dramatic change, fueled by the recent recession, changing lifestyles and human capital technology. The composition of workers has changed to include more freelancers and part-time workers, and everyone can stay connected to the office due to advancements in voice, video and collaboration technology.
Manage AssetsRead Now »
Best Practices For An Education StrategyBest practices for creating an end-to-end education strategy
Research suggests that plan sponsors are grappling with a conflict between the belief that they provide valuable participant education and the recognition that too many employees are not making informed decisions about their retirement.  A deeper understanding behind this disconnect may be the first step in developing a more effective participant education approach.
Manage AssetsRead Now »
Outsourced Investment SolutionsMeeting today's challenges with outsourced investment solutions
From soaring market volatility to an increasingly complex regulatory environment, the challenges confronting institutional asset owners have never been greater.It comes as no surprise, then, that many pension plans, endowments, foundations and other investors are searching for new ways to achieve their investment objectives while controlling risk and keeping costs down.
Manage AssetsRead Now »
Driving Efficiency in Healthcare PaymentsDriving efficiency in healthcare payments
Like many other sectors, the healthcare industry is continually looking for ways to improve efficiency and productivity. Electronic payments can support these goals by reducing costs, improving payments accuracy (resulting in fewer disputes) and optimizing working capital.
Manage AssetsRead Now »
The Evolution of Big DataThe evolution of big data
The explosion of the Internet, social media, technology devices and apps is creating a tsunami of data. Extremely large sets of data can be collected and analyzed to reveal patterns, trends and associations related to human behavior and interactions.
Manage AssetsRead Now »
Retiring "Boomers"Retiring “boomers” may be running out of time 
At the moment, private equity firms are bursting with capital, and strategic corporate buyers have access to funding at historically low rates. It’s a sellers’ market for middle-market companies at an opportune time for those baby boomer owners who are ready to retire.
Manage AssetsRead Now »
10 Reasons To Update Your Will Or Estate10 reasons to update your will or estate plan 
An estate plan should be dynamic with changes being made as your life changes. The following may offer some guidance as to when you should review your estate plan.
Manage AssetsRead Now »
Patients Take the WheelThe impact of healthcare consumerism on companies
Companies are facing an environment of constant change in healthcare—from HIPAA in the 90’s to passage of the Affordable Care Act. There is also a paradigm shift in patient attitudes and behaviors with respect to healthcare consumption. PNC Healthcare commissioned Shapiro+Raj to explore these changes and their impact on providers, payers and employers.
Manage AssetsLearn More »
Developing Talent For Key FunctionsDeveloping talent for key functions
The continued growth of a company often hinges on having the right talent in place and building bench strength.  Many companies have found it smart to develop leaders at all levels of the organization, not just in the senior ranks. 
Manage AssetsRead Now »
Strategies for Addressing the Skills GapStrategies for addressing the skills gap
It’s no surprise that U.S. employers are having a hard time finding qualified workers. Many jobs now require technical knowledge and specialized skills that prospective employees simply don’t have, creating a “skills gap.”
Manage AssetsRead Now »
Innovation in Healthcare Innovation in Healthcare: The future is here
The business model for healthcare is beginning to reflect changes driven not only by the Affordable Care Act (ACA), but also resulting from cost containment, greater emphasis on value, increased innovation and new technologies.
Manage AssetsRead Now »
Financial WellnessFinancial wellness for employees can help boost the bottom line
The vast majority of your employees may not be investing enough for retirement and aren't engaged in understanding their retirement plan. Here are some steps that can benefit your employees and your business.
Manage AssetsLearn More »
Roth IRA ConversionsStrategic benefits for high-income individuals
An often overlooked aspect of the tax code can allow even high-income individuals to benefit from the unique tax structure of Roth IRAs.
Manage AssetsLearn More »
Boosting 401(k) Retirement ReadinessBoosting 401(k) retirement readiness
With retirement savings taking a back seat to more immediate financial concerns, and the percentage of workers confident that they’ll have enough money for a comfortable retirement at low levels, it’s more important than ever for plan sponsors to consider retirement readiness as a key — if not the key issue — their employees are facing.
Manage AssetsRead Now »
How Long Will Dividends MatterHow long will dividends matter?
With interest rates set to rise, do income-producing stocks still belong in the average investor’s portfolio? The answer: Probably — but it depends. When interest rates dropped, many income investors turned to dividend-paying stocks in search of yield. But even as interest rates have risen from their historic lows, dividend yields remain attractive.
Manage AssetsRead Now »
Making Retirement a GoalMaking retirement a goal
It seems more Americans are taking responsibility for managing their own retirement assets instead of relying solely on a pension. Many are also wondering how to fund the period after the traditional retirement age. Given these factors, we believe thinking about a retirement goal has never been more crucial.
Manage AssetsRead Now »
Investment Strategy QuarterlyDeleveraging aiding a longer recovery
The U.S. economy has made significant strides since the financial crisis and subsequent Great Recession. 
Manage AssetsRead Now »
Health Savings AccountsHealth savings account regulations
Health Savings Accounts (HSAs) are not entirely new, but are receiving greater attention today in relation to high-deductible health insurance plans and the Affordable Care Act. They are often viewed as a strategy for reducing healthcare costs and for encouraging individuals to take greater responsibility for their health and the cost of care.
Manage AssetsRead Now »
The Impact of Auto EnrollmentThe impact of auto enrollment
Automatic enrollment has been particularly effective in raising 401(k) plan participation levels of groups with the lowest contribution rates — younger and lower-wage workers, but some questions remain.  As a plan sponsor, you should understand both the potential benefits and the limitations.
Manage AssetsRead Now »
Your Financial Fitness CheckupYour financial fitness checkup
Your financial well-being, like your health, can benefit from regular checkups — but where to start?   Here is a step-by-step plan to improve your financial fitness.
Manage AssetsRead Now »
Asset Protection PlanningProtect your assets against expected and unexpected threats
Asset protection planning is an important part of a comprehensive estate and financial plan addressing an individual’s risks now and in the future. Proper asset protection planning requires time, consideration and knowledge to fully integrate the planning holistically and effectively.
Manage AssetsRead Now »
The 2014 Retirement Policy LandscapeA review of the 2014 retirement policy landscape
Plan sponsors may be impacted by new executive initiatives, legislative proposals and a range of anticipated regulatory actions affecting retirement plans. This year is shaping up to be an active one on the retirement policy front across a broad spectrum of issues. 
Manage AssetsRead Now »
The Affordable Care Act UpdateThe Affordable Care Act Update: Navigating its changes and challenges
Dealing with the many facets of the Affordable Care Act (ACA) is a highly challenging endeavor for companies of all sizes. Changing regulations, the evolving nature of the exchanges, new options for individuals, implications for wealth planning and taxes are just a few of the issues that must be addressed.
Manage AssetsLearn More »
The Retirement Policy LandscapeThe Retirement Policy Landscape: What Plan Sponsors need to know
If you are a plan sponsor, you may be impacted by new executive initiatives, legislative proposals and a range of anticipated regulatory actions affecting retirement plans.  
Manage AssetsLearn More »
Investment Strategy QuarterlyInvestment strategy quarterly
When looking at stocks and their relative performance an investor may find it difficult to understand the reasons some have performed or are performing better than others. We believe it is important to begin with an understanding that fundamentals are key drivers of performance. An important step in investment management is analyzing portfolio performance.
Manage AssetsRead Now »
A Solid 401(k) Plan Begins With the RFPA solid 401(k) plan begins with the RFP
The value of a Request for Proposal (RFP) lies in the process and thinking that is invested in it. The RFP is a platform to describe a company’s objectives, priorities and expectations of candidate vendors. This exercise lays the foundation that creates the framework of a solid 401(k) employee benefit plan and helps identify an effective provider.
Manage AssetsRead Now »
Are 401(k) Expenses ReasonableBenchmarking: Are 401(k) expenses reasonable?
Fiduciary responsibility under ERISA is very important to 401(k) plan sponsors. Fiduciaries have significant responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries.
Manage AssetsRead Now »
Setting Goals For Your Retirement PlanSetting goals for your retirement plan
Whether you are establishing a new retirement plan or looking to improve an existing one, setting goals is a critical first step in achieving a plan that is highly effective for the company as well as for its employees.
Manage AssetsRead Now »
Defined Contribution PlansEight misconceptions of defined contribution plans 
If you are involved in the administration of your company's retirement plan, it is important to understand what your role as a plan sponsor entails, as well as how to delegate parts of your fiduciary responsibility if you choose to do so. 
Manage AssetsRead Now »
Managing Assets For RetirementManaging assets for retirement
Typically, the word “volatility” refers to daily changes in the prices of stocks or bonds. Volatility affects the market value of your retirement portfolio. Thus, volatility is a topic that deserves special consideration when managing retirement and pre-retirement assets.
Manage AssetsLearn More »
New Mobile Banking SolutionsMobile banking for financial decision-makers
In today's "do more with less" world, financial decision makers have to be available 24/7 to ensure that their enterprise runs smoothly. Now it's easier than ever to stay connected to your business with corporate online banking services on your smart phones and tablets.
Manage AssetsLearn More »
Healthcare and Retirement Healthcare costs and retirement insecurity
Health care costs are forcing a new calculus on traditional retirement planning. Not only are health care costs rising faster than the general inflation rate, but health care expenses will comprise a growing percentage of our spending as we grow older. Consequently, the simple benchmarks used in the past by retirement planners may hold less relevance today for current and future retirees.
Manage AssetsRead Now »
Solid Company Retirement PlanSetting the cornerstone for a solid company retirement plan
In building the tallest skyscraper or a one-story home, it's the blueprint that matters most. You cannot build up until you design the layout. That holds true for a 401(k) and other retirement plans, defined contribution or otherwise. A retirement plan's design, carefully constructed, monitored and maintained, forms the foundation of any effective, successful plan.
Manage AssetsRead Now »
Virtual A/P CardsA working capital case study
Join us to hear firsthand how one company realized significant gains within 12 months of implementing virtual accounts payable cards. We will discuss how a fast ramp-up generated a significant reduction in working capital while extending days payable outstanding. Topics will include:- Working capital reduction and days payable metrics, tips to enroll suppliers, and a model for supplier negotiations
Manage AssetsLearn More »
Increase Your Company's Value Companies are being rewarded for increasing their rates of return on cash flow
Topics will include:- Cash flow as a measure of company performance- Capital allocation as a key determinant of value creation- How key metrics apply to private and public companies alike
Manage AssetsLearn More »
Investment Policy StatementDoes your company have a well-thought investment policy? 
Putting your investment policy in writing is the foundation of effective investing.  Your policy should provide benchmarks to help you evaluate how well it is working and what changes may be needed to make it more effective.
Manage AssetsLearn More »
Affordable Care Act ChallengesInformation on healthcare exchanges
Our panel of healthcare and treasury management leaders will provide insight to help you address these issues and more: - Recent changes, including the postponement of the employer mandate reporting requirements - Characteristics of the new exchanges- Selecting a policy through an exchange - Healthcare economics background
Manage AssetsLearn More »
Five Threats to Your RetirementCurrent issues in retirement planning
Thinking about retirement is no longer a future event for many Americans; most recognize the need for careful planning throughout their working years. While it is a positive that Americans are expected to live longer, this can add to the already daunting challenges of funding a comfortable retirement.
Manage AssetsRead Now »
Defined Contribution PlansEight misconceptions of defined contribution plans
If you are involved in the administration of your company's retirement plan, it is important to understand what your role as a plan sponsor entails, as well as how to delegate parts of your fiduciary responsibility if you choose to do so. Even unintentional mistakes can lead to a breach of fiduciary duty that can have significant consequences for your company and you personally.
Manage AssetsLearn More »
Reasonable 401k Fees and ExpensesBenchmarking for that 401(k) fees and expenses are reasonable
Fiduciary responsibility under ERISA is very important to 401(k) plan sponsors. Fiduciaries have significant responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. Confirming that fee disclosures are adequate and that plan fees and expenses are reasonable are two examples of these responsibilities.
Manage AssetsRead Now »
Trends in Defined Contribution Plan DesignCurrent trends in retirement plans
This Webinar examines trends in retirement plans, including features and functions. It also covers fee disclosure requirements, including vendor-to-sponsor and participant fee disclosures and ends with a question-and-answer period.
Manage AssetsLearn More »
PNC Delaware Trust CompanyStrategies for wealth protection
With roots that go back to the first bank charter in Wilmington, Delaware in 1795, PNC Delaware Trust Company has grown by providing customized strategies for personal and business asset protection and innovative wealth planning approaches.   A limited purpose trust company established under the laws of Delaware, PNC Delaware Trust Company provides a number of benefits unique to Delaware.
Manage AssetsLearn More »
Fortifying Your Own Financial FutureFortifying your own financial future in turbulent times
Manage AssetsRead Now »
Workplace BankingWorkplace banking
You do not necessarily need to pay more to attract and retain good employees. Smart managers are sweetening their employee benefits package with low-cost or no-cost perks to help their companies stay competitive in the market for good employees. Workplace banking can help you attract and maintain employees and improve their financial health.
Manage AssetsRead Now »
Escrow ServicesAgent's Role in Escrow services
When companies engage in mergers, acquisitions or real estate transactions, all eyes are on closing the deal. However, choosing an escrow agent — often a mandatory step in the process — is frequently low on the priority list, even though a successful close may rely on it.
Manage AssetsRead Now »
Fortifying Your Financial FutureFinancial planning for executives
Whether you have an ownership stake in a privately-held mid-size company or you are an executive in a large, publicly traded corporation, it’s likely that you are spending more and more time addressing the current economic uncertainty and exceptionally volatile markets.  That leaves less and less time to devote to your personal financial planning.
Manage AssetsLearn More »
Retirement in the New Normal EconomyProfessional support can help you plan for a more secure retirement
Americans’ confidence in their ability to afford a comfortable retirement has plunged to a record low. 401K and other retirement plan participants are looking for online solutions to get their retirement savings back on track. Plan sponsors should be aware that professional participant advice and professional management can help.
Manage AssetsLearn More »

The materials or video that you are going to view were prepared for general information purposes only and are not intended as legal, tax or accounting advice or as recommendations to engage in any specific transaction, including with respect to any securities of PNC, and do not purport to be comprehensive. Under no circumstances should any information contained in those materials or video be used or considered as an offer or commitment, or a solicitation of an offer or commitment to participate in any particular transaction or strategy. Any reliance upon any such information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Any opinions expressed in those materials or videos are subject to change without notice.

PNC is a registered mark of The PNC Financial Services Group, Inc. ("PNC")
©2016 The PNC Financial Services Group, Inc. All rights reserved.

General Disclosure

Site Map