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Checksmart Excessive Fee Suit Requires Closer Look at Fund Performance
Last Updated: August 25, 2016

- Make the retirement plan committee complete with multiple members, bylaws, and proper delegation and acceptance forms.
- Have a committee meeting at least annually.
- Have the committee thoroughly discuss each fund offered by the plan, evaluating each fund’s expense ratio and individual fund performance in light of the plan’s investment policy statement.
- If the retirement committee does not have members who are investment experts, hire an independent expert. This expert can help evaluate and assess the fund line-up, keeping both fund expenses and performance in mind.
- Summarize discussions and decisions in committee meeting minutes.
- Monitor and review (or hire an expert) the plan’s payments to all service providers and how the plan expense account is maintained.
- Have the committee use this information to decide whether to retain funds, service providers, and how best to pay for plan expenses.
- Determine if services are necessary and fees are reasonable.