What does the DOL recommend regarding the frequency of soliciting proposals from the market?

The Department of Labor (DOL) recommends soliciting proposals from the market every 3-5 years to ensure that plan sponsors are fulfilling their fiduciary duties effectively. This frequency allows plan sponsors to remain informed about new products, services, features, and competitive pricing that may not have been available during the last inquiry. Regularly soliciting proposals helps to promote a healthy level of competition among service providers and ensures that a plan is receiving optimal services at fair costs.

Moreover, this practice supports the investment in the plan's participants by maintaining up-to-date knowledge of the market and allowing plan sponsors to make adjustments that can benefit the participants. While annual solicitations may lead to unnecessary administrative burdens, and longer periods like 10 years might risk falling behind in terms of best practices and available options, the recommended timeframe balances due diligence with practicality, leading to better-informed decisions regarding service providers.