Did You See That? Benchmarking in 401(k) Plans Video

Benchmarking your 401(k) plan is the process of evaluating if the services provided to the plan, its investment and management fees, are competitive with other plans, services, and investments of a similar size or type. It’s prudent for plan sponsors and fiduciaries to benchmark fees and services periodically, maybe annually, against industry standards, including advisory, recordkeeping, and investment fees. Compare investments to the performance of their assigned benchmarks more frequently and check those chosen benchmarks.

Watch now »

Related Content

• Investment Committee Issues for Defined Contribution Plans
  Recognize that, in determining a proper benchmark, a plan’s investment committee should try to select an index with attributes similar to the asset in question. Most mutual fund materials identify the benchmarking index used by that fund as is also required for participant disclosures under 29 C.F.R. § 2550.404a-5. An investment consultant can also help the committee with this task. 
• ERISA Retirement Plan Investment Resource Kit
  Reference this resource kit which provides guidance in the form of practice notes, checklists, templates, and clauses relating to the investment, administration, and governance of retirement plans to aid compliance with ERISA rules.

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account.     

• Employee Benefits & Executive Compensation Key Legal Developments Tracker
  Stay informed on new developments.
  • Employee Benefits Security Administration (EBSA) amends existing procedures governing the filing and processing of administrative prohibited transaction exemption applications. 89 Fed. Reg. 4662 (Jan. 24, 2024); DOL News Release.
  • Retirement Plans. EBSA issues FAQs regarding Pension-Linked Emergency Savings Accounts (PLESAs), permitted as a retirement plan feature under Section 127 of the SECURE 2.0 Act and as effective for plan years beginning after December 31, 2023. See DOL News Release. The guidance quickly follows IRS’s recent PLESA guidance. See Notice 2024-22.
  • Retirement Plans. IRS issues final regulations providing guidance on minimum present value requirements that apply to certain defined benefit pension plans under R.C. Sections 411(a)(11) and 417(e). 89 Fed. Reg. 3552 (Jan. 19, 2024).

• Generative Artificial Intelligence (AI) Resource Kit is a frequently updated collection of current Practical Guidance materials on generative AI, ChatGPT, and similar tools.
• Public Interest, Pro Bono, and Non-Profit Resource Kit offers valuable guidance for those providing pro bono legal services and assisting non-profit organizations and public interest groups. It includes useful content on topics including tenant's rights, fair housing and lending, discrimination, immigration, and general non-profit resources. 
• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts. 
• Practical Guidance Journal Winter Edition features Generative AI’s explosive impact on the law and legal practice. Explore developments covering Generative AI in discovery, data security, and intellectual property. Also review new private market data for real estate and labor & employment practitioners. 
• Check out our Practical Guidance Author Center! Learn about the 2000+ leading attorney authors contributing to our 26 practice areas, and find out how you can Become a Practical Guidance Author. Practical Guidance is committed to amplifying diverse voices of attorneys across all differences, including gender and race.  
• Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content. 
• Listen Up! The Practical Guidance and Law360 Podcasts Resource Kit features interviews with industry-leading attorneys on cutting edge issues in the law: AI, NFTs, Cannabis, and more.
• New and Updated Practical Guidance Content
  • Cybersecurity for Retirement Plans Resource Kit
  • SECURE 2.0 Act Implementation Timeline for Retirement Plan Sponsors
  • Minimum Funding Requirements for Defined Benefit Pension Plans
  • Nondiscrimination Testing in 401(k) Plans: ADP and ACP Tests
  • Retirement Plan Mergers and Spin-Offs
  • ERISA Fiduciary Concerns Relating to Cybersecurity: Theft of Plan Assets
  • Not Done Yet—Employee Benefits Plan Transition and Integration Decisions Continue After M&A Transactions Close

PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+