New disclosure regulations from the Department of Labor (DOL) haven’t resulted in significant changes on the part of 403(b) plan sponsors. And only a very small percentage of participants expressed concern or confusion about the new disclosure information.
These and other insights are included in the latest survey from the Plan Sponsor Council of America (PSCA), Impact of Fee Disclosure Regulation on 403(b) Plan Sponsors and Participants . Sponsored by the Principal Financial Group®, the survey is the only one of its kind to focus specifically on 403(b) plan sponsors.
“The new disclosure rules constituted a change in how fees and other plan information are reported, and that was cause for some concern on the part of plan sponsors and financial professionals alike. However, our survey shows that both plan sponsors and participants are responding well to the new regulation,” says Bob Benish, interim president and executive director, PSCA.
According to the survey:
- Only 19.1 percent of 403(b) plan sponsors sent out requests for proposals (RFPs) or requests for information (RFIs) as part of complying with the new regulation.
- One-third of plan sponsors used fee disclosure information to benchmark their plans.
- Just 2.3 percent of participants asked questions about the fee disclosure information they received.
- An overwhelming majority (95.9 percent) of plan sponsors reported no changes in participant behaviors as a result of fee disclosure.