For more stories like this, sign up for the PLANADVISERdash daily newsletter.
Data & Research November 9, 2012
Participant Behavior Unchanged by Fee Disclosure
Few
defined contribution (DC) plan participants have changed their behavior based
on fee disclosure information they have received.
Reported by Kristen Heinzinger
According to a Plan Sponsor Council of America (PSCA) snapshot survey, almost all (95.6%) plan sponsors reported no change in participant behavior as a result of the fee information. An average of 1.4% of participants asked questions regarding the fee disclosure information.
Additionally, as a result of the service provider fee disclosure requirements, 15.4% of plan sponsors sent out a request for proposal/request for information, indicating that plan sponsors are doing their due diligence to make sure that the fees their participants are paying are reasonable.
“Participants are receiving the notices but aren’t calling or asking questions,” said Bob Benish, PSCA’s interim president and executive director. “They either aren’t reading the disclosures or they don’t seem to be surprised by the fees they pay.”
PSCA’s survey was conducted in October 2012, and received 176 responses from defined contribution plan sponsors. Click here for full survey findings.