Retirement Consulting Insights
Fiduciary Risk Is Evolving — Is Your Oversight Process Keeping Up?
SEPTEMBER 1, 2026
Retirement plan sponsors continue to operate in an evolving fiduciary landscape. As SECURE 2.0 provisions are implemented and litigation related to plan fees and forfeitures continues to develop, maintaining clear governance and oversight practices can demonstrate ongoing diligence in meeting fiduciary responsibilities.
A fiduciary oversight review provides a structured, documented process to help organizations meet their fiduciary obligations under ERISA, identify emerging risks, improve participant outcomes and uncover opportunities to enhance plan effectiveness while reducing fiduciary liabilities.
The Value of a Fiduciary Oversight Review
Several converging pressures are making a documented, ongoing fiduciary review process no longer optional:
- Plan amendment deadlines are approaching. Plans have until December 31, 2026, to formally amend documents for CARES Act, SECURE Act and SECURE 2.0 provisions, including the new mandatory Roth catch-up requirement for certain high-earning employees. Many plans have already been operating under these rules, but plan documents may still need to be amended to reflect current requirements, and administrative procedures should be reviewed to ensure alignment with the amended plan terms.
- Litigation is evolving, not slowing down. In addition to ongoing litigation related to plan fees, recent lawsuits have focused on the treatment of forfeitures. These developments underscore the importance of thoughtful fee benchmarking and a clear process for evaluating plan expenses.
- New risks are harder to spot. Industry consolidation, private equity ownership of service providers, proprietary investment products and participant-data monetization are creating conflicts of interest that a routine fee review won't necessarily catch.
- Participants expect more than accumulation help. As the industry shifts from saving toward spending, employers are being asked to evaluate retirement income solutions, updated target date funds and lifetime income options — all of which carry their own fiduciary evaluation requirements.
- Plan design and participant engagement are receiving greater scrutiny. Employers are increasingly expected to evaluate whether plan features, investment menus, retirement income solutions and participant education programs are helping employees achieve better retirement outcomes. A well-documented review process can help measure whether the plan is meeting those objectives.
Driving Better Plan and Participant Outcomes
A fiduciary oversight review delivers value beyond compliance by helping organizations strengthen governance, manage risk and support better outcomes for plan participants.
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Improved Well-vetted |
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Ongoing Oversight Backed by Specialized Expertise
Each client that works with USI is assigned a dedicated investment consultant who provides continual fiduciary support across all aspects of retirement plan management, including the Fiduciary Oversight Review (FOR).
The benefits of USI's FOR report include:
- Providing ongoing fiduciary education and governance support for retirement plan committees
- Documenting a prudent process for selecting and monitoring investments and service providers
- Offering a formal fiduciary evaluation of investments, based on USI’s quantitative and qualitative due diligence process, led by its research team
- Evaluating fees, expenses and potential conflicts of interest to help ensure costs remain reasonable
- Monitoring regulatory developments, legislative changes and compliance deadlines
- Enhancing participant outcomes through plan design, investment oversight, participant engagement and qualified default investment alternative (QDIA) evaluation
- Delivering insights from USI's retirement investment consultants, ERISA attorneys and actuarial professionals
As co-fiduciaries, USI’s retirement specialists regularly evaluate plan fees and expenses to help ensure costs remain fair, competitive and aligned with the services delivered. This process can identify opportunities to reduce unnecessary expenses, strengthen fiduciary decision-making and improve value for plan participants.
Case Study: USI's FOR Process Identifies Governance Gaps
A client's previous investment advisor did not provide regular investment reviews for its 403(b) plan. After engaging USI, we conducted ongoing investment due diligence, monitored performance against the plan's investment policy statement and implemented a structured fiduciary oversight process.
Our review identified opportunities to enhance the plan's investment lineup through greater diversification and a simplified menu designed to better meet participants' varying needs and risk tolerances. We also developed an employee education and communication campaign to encourage engagement and support informed investment decisions.
During the review, we uncovered significant governance deficiencies that could have increased fiduciary risk and exposed the plan to potential litigation or DOL penalties. The FOR enabled the client to address these issues proactively, strengthen governance practices, improve participant engagement and reduce advisory fees by $7,500 annually.*
The result: a stronger fiduciary process, enhanced investment oversight, a better participant experience and measurable cost savings for the plan.
Strengthen Your Fiduciary Process
USI's fiduciary oversight review helps organizations navigate evolving regulatory requirements, strengthen governance practices, identify potential liabilities and improve participant outcomes through a documented, prudent process.
To learn more, please contact your USI retirement representative, visit our Contact Us page, or reach out to us directly at information@usicg.com.
*Actual results will vary. The use of any stated benefits in this case study is intended for illustrative purposes only and may not be used to predict or project future results.
Investment advice provided to the Plan by USI Advisors, Inc. Under certain arrangements, securities offered to the Plan through USI Securities, Inc. Member FINRA/SIPC. Both USI Advisors, Inc. and USI Securities, Inc. are affiliates of USI Consulting Group.
This information is provided solely for educational purposes and is not to be construed as investment, legal or tax advice. Prior to acting on this information, we recommend that you seek independent advice specific to your situation from a qualified investment/legal/tax professional. | 1026.R0827.0027
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