Gordon Asset Management LLC created the website, www.401kFeeDisclosure.com, in response to a 2012 update to fee disclosure regulations within section 408(b)(2) of the Employee Retirement Income Security Act (ERISA).
Developers also pointed to recent multimillion dollar class action settlements regarding fee disclosure violations, as well as the Department of Labor’s (DOL) announced intention to step up fee disclosure audits, as reasons for plan sponsors and advisers to use the Web tools.
“As a responsible plan fiduciary, you have a duty to know what your fees are and a legal obligation to ensure they are reasonable and necessary for the value of services provided,” Joe Gordon, managing partner of Gordon Asset Management, said.
Gordon authored a white paper featured on the website titled, “How to Survive the Coming 401(k) Fee Disclosure Audits; 10 Things Every Responsible Plan Fiduciary Should Know and Implement Now.” He said both the paper and the wider website provide actionable solutions for plan sponsors looking to protect their plans from potentially damaging disclosure mistakes and omissions.
For plan sponsors seeking further assistance in complying with fee disclosure regulations, the website also offers the “Service Provider Disclosure Review,” an independent assessment tool sponsored by CEFEX. The tool analyzes quantitative data on covered service providers available in benchmarking databases and seeks to illuminate qualitative factors driving value and satisfaction among plan participants.