Conducting a 401(k) annual plan review is a necessary part of a plan sponsor’s fiduciary responsibility. There are always areas where a 401(k) plan could be improved, and this meeting should uncover those areas. Occasionally, changes at the company dictate alternate 401(k) plan designs or features.

The retirement plan review should include a comprehensive review of the investments, 401(k) service providers, participation, communication, participant education and other plan features. It answers questions such as, “What does the 401(k) plan sponsor like about the current plan?” and “What do they dislike – or would they change?”

Examples:

Four Steps to an Effective Annual Plan Review, from the American Funds, outlines the process to prepare the client’s portfolio and 401(k) retirement plan review.

Portfolio Insight, by John Hancock Funds, is an interactive, monitoring and evaluation tool that provides transparency to clients’ portfolios.

401(k) Fee-Benchmarking Report, from Invesco and www.401ksource.com is a tool that helps 401(k) plan sponsors determine how reasonable their plan fees and expenses are through a comparision of similar 401(k) plans in the marketplace.