Fee for benchmarking study a settlor expense?

[Sabrina1]

If the plan administrator pays for a benchmarking study, is that fee considered a settlor expense?  Or an administrative expense that can be paid out of plan assets?

[Madison71]

That's a good question and one that I am not 100% sure on.  I know some plan studies are considered settlor expenses that cannot be paid out of the plan.  I think in this case there is a fiduciary decision to do a benchmarking study to ensure plan expenses are in-line which is a benefit to the plan and participants.  I think as long as the fees are reasonable that they could be charged to the plan if the plan allows. 

[jpod]

Seriously, even if it's permissible, how many employers really charge their plans' participants for these types of things?   What do you tell them?  Do you say "the plan paid $XXX for a study to make sure we are living up to our fiduciary responsibilities"?   

[Bird]

18 hours ago, jpod said:

Seriously, even if it's permissible, how many employers really charge their plans' participants for these types of things?   What do you tell them?  Do you say "the plan paid $XXX for a study to make sure we are living up to our fiduciary responsibilities"?   

I'm with you, and/but all of those 3(21) and 3(38) services that I hear about are paid for by participants, one way or another, even though they are all about protecting the brokers, IMO.  Do(n't) people realize that it takes decades to weed out randomness and evaluate a manager?  Eyeballing more than once a year is wasteful, but I don't expect to change anything, except in my little corner of the world.