Any size retirement plan can run into serious trouble when
sponsors are not careful. With some planning, however, your
qualified retirement plan can take steps to avoid ERISA litigation.
A reminder of the most common "red flags" leading to
litigation might be helpful.
Reasonable Expenses
Although plan sponsors cannot assure consistently strong
investment performance, you can, and must, ensure that expenses are
reasonable.
When your plan's investment portfolios are performing well,
it is easy to pay less attention to the recordkeeping costs and
investment management fees. However, when performance is subpar,
out-of-line expenses stick out like the proverbial sore thumb. Make
sure you schedule regular, independent reviews of your plan
expenses and fees every three to five years as part of your overall
due diligence efforts.
