Imagine your 401(k) as a well-built home. Just because it looks sturdy doesn't mean it doesn’t need regular check-ups. Similarly, even if nothing seems “wrong” with your plan, regular benchmarking is vital to ensure it remains compliant, cost-efficient, and aligned with participant goals.

Understanding 401(k) Benchmarking

401(k) benchmarking is the process of comparing a plan’s features, fees, investment performance, and participant outcomes against industry standards. This allows you to evaluate whether fees are reasonable and transparent, documenting fiduciary compliance while supporting peace of mind for plan sponsors.

The Power of Regular Reviews

By conducting frequent reviews, you can evaluate investment performance and explore better alternatives. This practice has become essential with the industry shift toward annual reviews due to rising fiduciary lawsuits and market changes.

The Value of Engagement Assessment

Assessing participant engagement and retirement readiness is key. Monitoring these metrics supports ongoing plan health, helping to boost talent attraction, retention, and overall productivity.

Examples to Consider

Think of unchecked fees as termites in your well-built home, slowly causing damage. Better investment options are like upgrading insulation, improving the overall function. By addressing these, you ensure more robust and beneficial outcomes for your participants.

In conclusion, stay proactive. Regular 401(k) benchmarking plays a critical role in ensuring your retirement plan’s success. Don’t hesitate to seek expert help when reviewing your plans, to catch potential issues before they become costly problems.