Double Whitehouse

Take these mind experiments for situations in which the employer charges $250 "just to get [the T.V. Participants] to move" and there are 25 active employee participants and 10 terminated vested participants. The new fee raises $2,500. The Plan holds $2,600,000 in assets. The T.V. account balances range from $6,000 to $16,000, with an average of $10,000; and the active employee Participant account (including executives) balances range from $100 (for one new participant) to $100,000, with an average of $100,000. Before the new charge, the Recordkeeper charged: a) $100 a participant ($100 x 35) or $3,500, with all revenue sharing fees from mutual funds returned to participant accounts b) 13 basis points on assets, or $3,380, with all revenue sharing fees from mutual funds returned to participant accounts.

The observation on the purpose of the additional fee is important; viz., "the possibility that what the sponsor wants to do is for the sponsor's benefit and not that of the participants". Take this mind experiment: The employer charges $250 "just to get [the TV Partcipants] to move." Say there are 25 active employee participants and 10 terminated vested participants. The new fee raises $2,5