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A number of challenges are being initiated by the plaintiffs’ bar and U.S. Department of Labor investigators in the area of retirement plan asset charges and retirement plan expenses. Some hospitals and other employers have had to pay many millions of dollars to settle these cases. Retirement plan sponsors and other plan fiduciaries (e.g., investment or administrative committees) should take heed of this trend and consider taking the following actions:

The bottom line: hospitals as retirement plan fiduciaries should assume they will be challenged on the retirement plan’s investment fees and administrative expenses. Plan fiduciaries should take whatever steps are necessary so they can later demonstrate with substantiating documentation that they evaluated all of the fees and expenses and that the fees and expenses were reasonable compensation for the services provided and the amount of assets invested.

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