August 16th, 2016

Recent Retirement Plan Law Suits Focus Plan Sponsor Attention on Fees

In a recent lawsuit, Danberg v. LaMettry’s Collision, Inc., the plaintiffs argue that the plan, despite only having $9 million in assets, still has the ability to negotiate lower fees. It is argued that the plan used higher priced retail share mutual funds when lower priced institutional class funds were available. They claim plan fiduciaries breached their duty to select appropriate and prudent mutual funds, exposing the participants to higher than reasonable fees. The plaintiffs also allege that some non-investment related fees are too high, such as those related to plan recordkeeping or administrative services.

Failure to conduct a request for proposal or completing due diligence on potential other options to minimize expenses can open Plan Sponsors and Trustees to similar liability. Every Plan Sponsor has a fiduciary duty to assess the appropriateness of all service providers and investment options, including the fees associated with each.

Capstone specializes in comprehensive plan benchmarking and helps Plan Sponsors mitigate this potential liability.

About Capstone Retirement Group

Capstone Retirement Group is a professional retirement plan consulting practice. We partner with plan fiduciaries to help identify and implement the optimal retirement plan for their organization.

7777 Leesburg Pike, Ste 401N
Falls Church, VA 22043
Tel: 703.291.8200
Fax: 202.747.5267

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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Capstone Retirement Group is not affiliated with Kestra IS or Kestra AS.

This site is published for residents of the United States only. Registered Representatives of Kestra Investment Services, LLC and Investment Advisor Representatives of Kestra Advisory Services, LLC, may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. Neither Kestra IS nor Kestra AS provides legal or tax advice. For additional information, please contact our Compliance department at 844-553-7872.