When it comes to managing a retirement plan, most fiduciaries focus on visible fees—recordkeeping, investment management, and advisory costs. But there’s a lesser-known revenue stream that could be quietly impacting your plan’s bottom line: float earnings.

What is float?

Float refers to the short-term interest earned when participant contributions or distributions are temporarily held in transit—often in an omnibus bank account—before being invested or paid out. In today’s higher interest rate environment, that float income can be substantial.

But here’s the catch: not all recordkeepers treat float the same way. Some retain it as indirect compensation, others share it with the plan, and a few credit it back to participants. Without proper oversight, float can become a hidden fee—one that may not align with your fiduciary responsibilities under ERISA.

Why This Matters Now

The Department of Labor has made it clear: fiduciaries must understand and monitor float practices. With increased litigation around excessive fees, ignoring float could expose your plan to unnecessary risk.

That’s why we created our latest training resource: Float Earnings: What Fiduciaries Need to Know

This concise resource breaks down:

• How float is generated and managed
• The fiduciary implications of float income
• Key questions to ask your service providers
• Best practices for transparency and oversight

Whether you're a plan sponsor, advisor, or committee member, this guide will help you uncover hidden costs and make more informed decisions.

Download this Fiduciary Training material.

Multnomah Group is a registered investment adviser registered with the Securities and Exchange Commission. Any information contained herein or on Multnomah Group’s website is provided for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Multnomah Group does not provide legal or tax advice.