401(k) Plan Design & Efficiency Review

Is Your 401(k) Plan Costing More Than It Should While Delivering Less Than It Could?

Independent plan design reviews typically uncover significant cost savings opportunities while identifying ways to dramatically improve employee participation and retirement readiness.

Your 401(k) plan is likely your second or third largest benefit expense, yet most plans haven’t been evaluated for services and cost for years. McKinsey research shows that employers switching service providers or redesigning benefit plans expect cost savings exceeding 10%—and innovative plan designs can deliver 10-30% in potential savings versus traditional models.

Our Independent 401(k) Plan Design & Efficiency Review gives you the clarity, competitive intelligence, and actionable roadmap to optimize your plan. You’ll receive benchmarked evidence showing exactly how your plan compares to peer companies, specific recommendations that protect you from fiduciary liability, and projections demonstrating the ROI of strategic plan improvements.

The Hidden Costs of “Set It and Forget It” Plan Management

If your 401(k) plan design hasn’t been independently reviewed in the past three years, you’re almost certainly leaving money on the table—and potentially exposing your organization to unnecessary fiduciary risk. Industry data reveals a troubling pattern: while approximately two-thirds of employers are planning to switch health plan carriers to control costs (McKinsey, 2024), retirement plans receive far less scrutiny despite representing similar expense levels.

The typical scenario we encounter:

Your plan was designed 5-8 years ago, possibly when your company was smaller and your workforce looked different. The matching formula seemed reasonable at the time. Your record-keeper says everything is “fine.” But nobody has actually evaluated whether your plan design is efficient, competitive, or aligned with current best practices.

Meanwhile, you’re potentially spending more than necessary on employer contributions, your participation rates may lag significantly behind industry benchmarks, and employees could be saving at rates well below what they need for retirement readiness. Your current service providers have had no incentive to suggest plan design changes—they’re paid to administer the plan you have, not optimize it.

• The fiduciary risk is real: Plan sponsors bear legal responsibility for operating plans prudently and in participants’ best interests. Without documented, independent analysis of your plan design efficiency, you lack the evidence needed to demonstrate prudent oversight. In an audit or DOL inquiry, “our record-keeper said it was fine” isn’t a defensible fiduciary position.
• The opportunity cost is significant: Companies that proactively review and optimize their 401(k) plans can achieve substantial increases in employee participation, meaningful improvements in savings rates, and material reductions in annual employer costs—all while strengthening their fiduciary position and improving employee outcomes.

Independent Analysis That Protects Your Interests and Your Budget

Our 401(k) Plan Design & Efficiency Review delivers exactly what HR leaders need: independent, data-driven analysis that identifies cost savings, strengthens fiduciary oversight, and provides the competitive intelligence necessary to present confident recommendations to leadership.

Unlike record-keeper “plan reviews” that simply confirm everything is compliant, we evaluate your plan’s efficiency against peer companies and industry benchmarks. We identify specific design changes that reduce costs whilst improving employee outcomes. And we provide the documentation you need to demonstrate prudent fiduciary decision-making.

What You Receive

• Comprehensive Plan Analysis Complete evaluation of your current plan design including eligibility, vesting, match formula, auto-enrolment settings, and cost structure. We analyse participation patterns, savings behaviour, and efficiency metrics to identify exactly where your plan underperforms.
• Peer Benchmarking Study Detailed comparison against 5-7 similar organizations plus industry benchmark data from the most recent national studies. You’ll know precisely how your plan measures up on participation, deferral rates, employer costs, and efficiency ratios. This competitive intelligence is invaluable for board presentations.
• Financial Modelling & Projections Five-year cost projections under your current design, plus alternative scenarios showing the financial impact of recommended changes. We model forfeiture offsets, participation improvements, and total savings potential. You’ll have clear ROI calculations for any proposed plan amendments.
• Actionable Implementation Roadmap Specific, prioritized recommendations with timeline, required notices, communication templates, and compliance checklist. We don’t just tell you what’s wrong—we provide the complete roadmap to fix it, including draft amendments and employee communications.
• Board-Ready Documentation Executive summary report with key findings, metrics dashboard, cost savings projections, and risk mitigation documentation. This is professional, third-party analysis that positions you as a strategic advisor to leadership—not just a benefits administrator.

From Assessment to Implementation in 5-6 Weeks

The Retirement Plan Crisis Hiding in Plain Sight

While healthcare costs dominate benefit discussions—with projected annual growth of 9-10% through 2026 according to recent McKinsey research—retirement plans receive far less scrutiny despite representing comparable expense levels. Yet the fundamentals are identical: without regular, independent evaluation of plan design efficiency, costs spiral while outcomes deteriorate.

McKinsey’s October 2024 analysis of US employer health benefits found that innovative plan designs can deliver 10-30% in potential savings versus traditional models. The same principle applies to retirement plans: thoughtful design optimisation produces dramatic improvements in both cost efficiency and participant outcomes. Just as approximately two-thirds of employers are planning to switch health plan carriers to control costs, retirement plans deserve the same strategic attention.

The market context makes this urgent:

• Rising Fiduciary Scrutiny: DOL enforcement activity targeting plan design decisions has increased significantly. Courts are holding plan sponsors to higher standards of documented decision-making, particularly around fees and plan design efficiency.
• Competitive Pressure: As McKinsey notes, an estimated 12 million commercial members could shift to innovative health plans by 2030—representing approximately 7% of the commercial market. Similar disruption is occurring in retirement plans, with QACA Safe Harbor designs and automatic features rapidly becoming the new standard.
• Talent Market Dynamics: Employees increasingly evaluate benefit quality when choosing employers. A poorly designed 401(k) plan—with low participation and weak savings outcomes—reflects poorly on your organisation’s commitment to employee financial wellness.
• Cost Control Imperatives: In an environment of persistent inflation and margin pressure, benefit costs require the same rigorous management as any other major expense category. Independent plan design analysis can reveal substantial opportunities for cost optimization that compounds over time.
• Documented Oversight: The strongest defence against fiduciary liability is documented evidence of regular, independent review and prudent decision-making. Our analysis provides exactly that documentation.
• The window for proactive action is narrowing. Companies that wait for a compliance issue, budget crisis, or employee relations problem to force plan evaluation end up making rushed decisions without adequate analysis. The prudent approach—and the fiduciary requirement—is regular, independent assessment of plan design efficiency.

Comprehensive Fiduciary Support When You Need It

Our 401(k) Plan Design & Efficiency Review is typically the starting point for organizations building a more strategic, defensible approach to retirement benefit management. Many clients engage additional services to maintain their improved fiduciary posture and ensure ongoing plan optimisation.

Additional Services

• RFP Management When it’s time to evaluate record-keepers or service providers, we run a disciplined, defensible process that documents your due diligence and ensures you’re selecting vendors based on clear, objective criteria rather than incumbent relationships. Why it matters: Runs a disciplined, defensible process for selecting benefit vendors.
• Fiduciary Decision Documentation Major plan decisions—design changes, provider selection, investment menu updates—require documented evidence of prudent process. We create the clear record supporting your decision-making that satisfies audit and DOL requirements. Why it matters: Creates a clear record supporting prudent decision-making.
• Annual Plan Governance Snapshot Rather than waiting years between reviews, many organizations engage us for an annual “health check” that confirms the plan remains compliant, efficient, and aligned with evolving goals and workforce demographics. Why it matters: Confirms the plan remains compliant, efficient, and aligned with goals.
• Independent Decision Validation When you’re facing a complex decision and want objective oversight, we provide independent analysis that validates your thinking or identifies blind spots. This is particularly valuable for one-off situations like mergers, acquisitions, or significant benefit changes. Why it matters: Adds objective oversight to major benefit decisions.
• Conflict-of-Interest Review Many organizations unknowingly operate under conflicted advisor or vendor arrangements. We identify and help mitigate conflicts that could expose you to fiduciary liability or unnecessary costs. Why it matters: Identifies and mitigates vendor or advisor conflicts.
• Benefits Redesign Education When leadership is considering significant benefit changes, we provide education on cost implications, risk factors, and design tradeoffs. This ensures decision-makers understand what they’re actually deciding. Why it matters: Helps leadership understand cost, risk, and tradeoffs.

These services operate on an a-la-carte or retainer basis, giving you flexibility to engage additional support when and where you need it most.

Common Questions from HR Leaders

Independent Expertise You Can Trust

Our 401(k) Plan Design & Efficiency Reviews are conducted by ERISA fiduciary specialists with deep expertise in retirement plan regulations, design strategy, and cost optimization. Unlike record-keepers or product vendors, we have no conflicts of interest and no products to sell. Our recommendations are driven entirely by what serves your organization and your employees best.

Our approach is grounded in:

• Current IRS and DOL regulations and guidance
• Industry benchmark data from authoritative sources
• Peer analysis using actual Form 5500 data from comparable organizations
• Evidence-based design principles proven to improve outcomes
• Fiduciary best practices aligned with ERISA requirements

We serve organisations across industries: Construction and trades, professional services, healthcare, manufacturing, technology, financial services, and non-profits.

Schedule your complimentary 30-minute discovery call today.