Our 401k manager had a meeting with my office yesterday to let us know about the new class of funds that had opened up to us. We moved from (Merrill Lynch) C funds to R funds. This means that on average, our expense ratios drop from 1.9% down to 1.6%! We do have an index fund (that got added at my request) with a high expense ratio of 0.36%, but when I asked if we could get the R fund of that (0.11% ER) she said it wasn't available!
I looked over the returns on the other funds and when the huge ER's were subtracted out, none of them beat the index over any long duration!