Recent litigation and the (now delayed) Fiduciary Rule have led plan sponsors to take a close look at plan fees as part of their fiduciary duty, and many fiduciaries believe that selecting providers with the lowest fees will fulfill their fiduciary obligations.

But that’s not always the case. Fiduciary duty is tied to ensuring that fees are reasonable–not simply the lowest. A prudent fiduciary process to ensure fees are reasonable involves a much wider scope of expert responsibility. A fiduciary must determine which service providers and investment options will be best for all plan participants. If a particular service provider can offer a service that would be beneficial to your plan participants, then that might be the best choice—even with higher fees.

Want to know more? Download our guide to Meeting Your Fiduciary Responsibilities.