Benchmarking comes in two flavors, generally:
- Fee and service benchmarking
- Plan design and demographic benchmarking
Plan Sponsors are required to know the fees they are paying for the services received and if those are “reasonable” for the situation. The only way to do this is through Benchmarking. This includes assessing your adviser’s fees and services. If you fully trust your adviser team, you can rely solely on them to provide a benchmarking report on their fees and services. However, it could prove to be beneficial to periodically have an unbiased third party review this.