As previously reported, the Department of Labor (DOL) recently finalized regulations on fee disclosure and retirement plans. The new regulations require that fees be spelled out so that plan sponsors and plan fiduciaries can determine if fees paid to their plan service providers are reasonable, as per existing ERISA (Employee Retirement Income Service Act) rules, and whether any conflicts of interest exist.

How are plan sponsors reacting so far to these new regulations? A recent survey of plan sponsors, conducted by Plansponsor.com, showed that:

• 75.9 percent didn’t think their participants would notice the resulting changes
• 14.5 percent thought participants would “yawn” or be uninterested
• 6 percent thought participants would “panic” or overreact to the changes
• 2.4 percent thought participants would “cry”, not wanting to deal with more paperwork
• 1.2 percent thought participants would “smile”, welcoming the changes

Interestingly, when Plansponsor.com did a related survey of plan participants, asking them how much they paid in plan-related fees:

• 49 percent said they knew how much they paid in fees
• 24.2 percent said they knew “approximately” how much
• 19.8 percent said they didn’t know how much
• 7 percent said they weren’t sure

When it comes to plan-related fees, NADART has always maintained transparency in disclosing this information. If you want to learn more about fees, you can request a copy of our “Understanding and Comparing 401(k) Plan Fees” booklet. You can also contact one of our representatives at (800) 462-3278, ext. 7254 or nadart401k@nada.org.