Within each category, multiple fee structures may apply, and costs can vary significantly based on plan size, participant count and provider relationships. As plans grow, fees don’t always decline proportionately, resulting in many employers paying more than necessary.

In many cases, advisory and recordkeeping costs are embedded within investment expenses, limiting transparency for both employers and participants. Without a comprehensive view, it’s difficult to assess whether plan expenses are reasonable or equitable.

Why Fee Benchmarking Matters

Fee oversight is more critical than ever. Increased regulatory scrutiny and excessive fee litigation have raised expectations for employers to demonstrate a prudent plan cost evaluation process.

Benchmarking provides employers with:

• A clear understanding of total plan expenses
• Insight into how their plan compares to similar organizations
• Documentation to support fiduciary decision-making
• Leverage to negotiate more favorable pricing

Finding Excess Fees and Negotiating Better Outcomes

USI’s retirement specialists deliver a comprehensive fiduciary expense analysis to uncover inefficiencies and improve plan value. Using a proprietary database of retirement plans of varied sizes across industries, combined with real-time market intelligence and RFP insights, we evaluate all plan-related expenses in detail.

Our analysis equips employers with the data and documentation needed to:

• Identify excess or misaligned costs
• Benchmark against comparable plans
• Strengthen fiduciary oversight
• Negotiate meaningful fee reductions

In our experience, the majority of plans we review have opportunities for cost improvement, often without requiring major plan disruption.

Our consultants can also serve as co-fiduciaries, helping organizations mitigate risk and strengthen governance related to both investment oversight and plan administration.¹ USI’s benchmarking shows most employers overpay for their plans — and we find fee savings in more than 75% of the retirement plans we review.²

Case Study: Lower Fees, Enhanced Services

A Midwest-based food and hospitality provider engaged USI to evaluate its retirement plan costs. Our benchmarking identified excess recordkeeping fees relative to comparable plans.

The client hired USI as the plan’s co-fiduciary investment advisor and consultant. Leveraging market data and insights from recent RFPs, we negotiated a 52% reduction in annual recordkeeping fees, while improving service levels and administrative efficiency, including streamlined payroll processing.³

Are You Paying Too Much? A Quick Self-Check

Consider the following:

When was the last time your plan fees were benchmarked?

Do you have full visibility into all fees paid by the plan and participants?

Have your costs decreased as plan assets have grown?

Are services aligned with what you’re paying?

If the answer to any of these is unclear, your plan may benefit from a closer review.