Prohibited Transaction

[30Rock]

A consulting firm claims they made an error in the contract with the plan and charged too many basis points for their fees. I believe this affected 3 plans in the controlled group and during one or two prior plan years. Is this a prohibited transaction? If they claim administrative error or oversight does that ondo any prohibited transaction liability for the plan sponsor, as the fiduciary, that allowed plan assets to be used to pay excessive fees?

Remedy is to disgorge the excess and return to the plan, plus lost earnings I would think. Should it be recommended that the sponsor file under DOL Voluntary Fiduciary Correction Program?

Thanks for any comments you may have!!