The Silver Lining in ERISA 408(b)(2)

I was recently retained by a law firm on behalf of a client that was randomly audited by the Department of Labor. The DOL asked the plan sponsor to provide documentation of the assessment they conducted to determine fee reasonableness. The result? A demand the plan sponsor reimburse the plan for the past six years of fees.

The Silver Lining

ERISA §408(b)(2) imposes new obligations that can be audited. New laws that impose new obligations impose new procedures which require new services that justify additional fees. In the words of Louis Pasteur, “fortune favors the prepared mind.”

Four Opportunities

1. Higher fees for a service never previously required
2. Compensation for prospecting
3. Increased market share by demonstrating valued services
4. Increased retention by demonstrating expertise