What does it mean when fees are assessed "pro-rata"? The pro-rata method of assessing a fee is when the total fee amount is deducted proportionally from participant accounts. In terms of fee fairness, pro-rata fees will ensure that all participant fees are reasonable based on their account balance. In terms of fee clarity, a participant will never be able to verify or calculate their pro-rata fee, since they are only aware of their individual account balance and not the balances of other participants.
The Department of Labor (DOL) fiduciary rule, delayed from the original April 10, 2017 deadline, expands the ERISA (Employee Retirement Income Security Act) definition of “investment advice fiduciary” so that every financial professional working with retirement plans would be held accountable as a fiduciary of the plan.