Eighty-three percent of 401(k) plan executives surveyed by Deloitte feel their plan fees are “competitive,” with another 71% rating the new fee disclosure requirements as important.
With sponsors due to receive 408(b)(2) fee disclosures on July 1, 75% of 316 respondents agreed or strongly agreed that they already have a clear understanding of plan and participant fees, according to Deloitte's Annual 401(k) Benchmarking Survey.
Of 317 responding to how their 401(k) plan's record-keeping and administrative fees were paid, 55% said all their record-keeping and administrative fees are paid through investment revenue; 31% replied there is a direct charge by the record keeper for fees not covered by investment revenue; 6% replied there were additional fees in the form of a wrap fee or added basis points for fees not covered by investment returns; and 8% replied other.
The median number of fund families utilized for 401(k) investment options was eight, and the median number of investment options was 16. Of 312 respondents, 92% replied they believe their plan offers the appropriate number of investment options.
Ninety-one percent of 314 respondents are very satisfied or satisfied with their record keepers.
A copy of the full survey can be found on Deloitte's website.
Deloitte surveyed a total of 430 firms that sponsor 401(k) plans. The combined asset size of the plans could not be learned by press time.
A phone call to spokeswoman Marykate Reese was not returned by press time.