By: Amy J. Remmick, CRSP, Retirement Benefits Officer

If this question left you scratching your head, it might be time to pull out those complicated fee disclosure notices that you receive annually and let us do the leg work to help reveal any potential fees that might be hiding in your plan.  

 The 408(b)2 disclosure is a fee document associated with an employer-sponsored retirement plan. The term comes from a specific part of the Employee Retirement Income Security Act of 1974 (ERISA), which outlines the rules for employer-sponsored defined benefit and defined contribution retirement plans like a 401(k). Regulations issued under Section 408(b)2 require service providers to give employers (and other responsible fiduciaries in a retirement plan) all the information necessary for those individuals to do the following:

  1. Assess the reasonableness of fees charged directly and indirectly by a service provider and paid out to both that vendor and any affiliates or subcontractors;
  2. Identify any potential conflicts of interest; and
  3. Satisfy fiduciary reporting duties and disclosures such as to all participants of the plan.

During the past year, we see many employers looking for ways to reduce their business expenses. Employer Sponsored retirement plans are a benefit that employers and participants might neglect thinking about. You set it up all those years ago, continue to send in your contributions each pay period, and business rolls on. But even in normal (pre-pandemic) days, your retirement plan expenses should be reviewed every couple of years. 

At First Western Bank and Trust, we have a team of experts that take pride in finding ways to make sure you are offering/offered the best benefit for the most reasonable price. 

For a “no-cost-to-you/no commitment” review of your current retirement plan expenses, please reach out to one of our team members.