PSCA: Fee-disclosure rules have little effect on 403(b) plans, participants
By Rob Kozlowski | December 4, 2012 12:00 pm
New Department of Labor fee-disclosure regulations have not led to significant changes in the behavior of 403(b) plans and participants, according to a survey from the Plan Sponsor Council of America.
The survey, “Impact of Fee Disclosure Regulation on 403(b) Plan Sponsors and Participants,” reported that 19.1% of 403(b) plans issued requests for information as part of complying with the new regulations.
Also, 33.6% of plans used the fee-disclosure information to benchmark their plan; of those, 64.3% made no changes, 19.4% reviewed fees with their provider, 16.3% changed participant education, 14.3% changed investment options and 6.1% issued requests for proposals. (More than one answer per sponsor was permitted.)
Nearly all the plans, 95.9%, reported no changes in the behavior of participants as a result of the new disclosures, and only 2.3% of participants asked questions about the fee-disclosure information they received.
In October, PSCA surveyed 351 non-profit organizations that sponsor a 403(b) plan.