July was the deadline for providers to disclose clearer and more detailed fee information to plan sponsors. Another, more challenging deadline — from an HR perspective — is approaching on August 30, 2012.This time, it will be up to plan officials — the very same committee members or individuals who typically sign off on 5500 forms — to supply more detailed and specific information to plan participants regarding the fees they’re paying for their 401(k) plan management and administration.
It’s no secret that plan participants are often in the dark when it comes to the plan fees they often pay out of their plan assets — with many, if not most, participants believing they pay no fees at all.
The AARP reported last year on a survey of more than 800 plan participants at the end of 2010. Seventy-one percent of those polled believed that they did not pay fees on their 401(k)s.
Plan sponsors should have the information to comply with the new fee disclosure regulations effective July 1, 2012. The next challenge is to supply this information to plan participants by September 1, 2012.
Please comment or call to discuss how this will affect you and your company sponsored retirement plan.