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Is It Important for 401(k) Fees to Be Equitable?
Workforce Management; registration may be required
[Opinion] Oct. 7, 2009 Excerpt: Increased fee disclosure to plan participants that may result from pending regulatory and legislative initiatives has the potential to bring the issue of fair fee payment to the forefront. Uneven administrative fees can leave plan sponsors open to uncomfortable questions by participants, or may even bias participants against funds that carry the lion's share of the administrative burden. However, creating an investment menu with equitable administrative fees can be challenging. As we just saw, revenue-sharing arrangements -- which are negotiated between the record keeper and the investment managers -- are usually not consistent, and plan sponsors may have no control over share classes that are available to them. MORE >> |
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