401(k) Plan Benchmarking

Geek Out!


A Plan Sponsor and/or Plan Administrator needs to be aware, on an ongoing basis, of how the Plan’s overall performance compares relative to internal stated objectives and also to other 401(k) plans having similar features, such as participant investment direction, safe-harbor, plan loans, hardship distributions, etc.

Key Benchmarking Criteria

Common Benchmarking Questions

Periodically (every three years) benchmarking these and similar aspects of comparably sized 401(k) plans should help you to understand where your Plan stands relative to other similarly situated plans. This, in turn, can help you to make proactive decisions to help reduce the likelihood of participants’ adverse claims based on fiduciary liability.

Outside Assistance

A competent, independent Registered Investment Adviser (RIA) or similar consultant currently acting on behalf of the Plan Sponsor may be able to assist you with the performance of this activity, depending on the terms of the services agreement between the Plan and the provider.

In addition, Organizations offering ERISA plan benchmarking services are available in the marketplace. When choosing a provider of these services, special care should be taken to determine their willingness to assume fiduciary status, the scope of resources from which to draw, and their reputation and expertise.