Rebuilding can be a refreshing process. It gives us the opportunity to think about what worked and what didn't and to start with a blank sheet of paper. It is a process of renewal. As painful as the last eighteen months have been, there is a bright side. We are going to take a fresh look at many sectors, processes, and systems in our economy. We are going to examine more closely how we do things.

One area with huge problems is the financial services industry. Driven by fear and greed, Wall Street has, once again, delivered a boom and bust cycle of gargantuan proportions. It's not all bad, as our system of capital allocation remains one of the best in the world. However, excessive risks, lack of transparency and obnoxious compensation have put the financial industry at the top of the Obama administration's hit list for re-regulation.

A potential beneficiary of all this will be the people saving for retirement through their employer's retirement plan. I want to make you aware of the questions you should be thinking about and asking your human resources department. One of the most misunderstood and least transparent areas of company-sponsored retirement plans is plan expenses and who pays them.

Let me be clear. There is no free lunch, despite the valiant efforts by many to position their services as free. Unfortunately, financial services companies do not have much incentive to provide transparency. However, the Obama administration is moving to change this and a House sub-committee recently successfully voted for sweeping change in this area.

Bundling all services into one platform, making the expenses opaque, limiting disclosure about whom is doing what and what they're getting paid is all part of the game played by 401k providers. The Department of Labor is focused on this and fiduciary liability is increasing.

The critical statistic for plan participants is the total costs borne by them as a percent of their account balance. This number includes direct mutual fund operating expenses, asset-based charges, and administration charges to pay for recordkeeping costs, compliance fees, and others costs. Many sponsors do not write a check to pay these expenses; rather, they are paid out of assets of the plan via fund operating expenses and asset-based charges. Participants would be shocked to learn that their "all-in" 401k operating cost could be 2 percent or higher!

A second concern for participants is the lack of model portfolios. Model portfolios are pre-packaged recommendations that are assembled by the plan's investment advisor from the plan's available fund choices. The purpose of these portfolios is to provide participants with pre-packaged investment strategies that are tied to their personal risk tolerance. This can reduce complexity, provide diversification, and possibly reduce risk.

Some plans offer asset allocation funds. These tend to be more expensive and do not necessarily provide best-in-class funds from each asset class. Rather, a fund company will pick from among all of its funds and combine them into one allocation fund. In return for this, they will add an additional layer of expense. So, you end up with a more expensive, yet diversified, portfolio which is not necessarily comprised of the best funds.

Finally, we see plan sponsors "setting it and forgetting it." This means that sponsors rarely hear from their investment advisors once a plan is put in place. It is imperative that sponsors review their plans periodically to ensure that their investment lineup is performing and that expenses are being monitored.

As many companies fight to survive, polishing up the employee retirement plan is not a top priority. However, the law requires sponsors to fulfill their fiduciary duties. Doing so makes a visit from the Department of Labor less unpleasant. Their job is to hold plan sponsors' feet to the fire. They can become very ornery when they perceive there to be a breach of fiduciary duty. Our belief is to keep it simple, to keep it transparent, and to keep it low cost. These key principles plus a regular monitoring and review schedule will go a long way toward providing your participants with a valuable benefit.

Jay Cohen is a registered representative of LPL Financial. Securities offered through LPL Financial. Member FINRA/SIPC.