December 10, 2009
--- New research sponsored by AUL Retirement Services finds 403(b) plan
sponsors are confident they understand their responsibilities and are
not worried about IRS audits. ---
When asked if they understand their fiduciary responsibilities under the new regulations, an overwhelming majority of respondents from all surveyed segments—church, public school, health, and other organizations—claimed they understand their responsibilities, according to the research report. Ninety-three percent of public school respondents said they understand their fiduciary responsibilities, while 88% of health care and other organizations and 84% of church plan sponsors said the same.
In addition, respondents in the health care and other organizations segment were asked whether or not they understand the Pension Protection Act, and 65% indicated they do.
Perhaps due to this feeling that they understand their responsibilities, both the public school and health care and other organizations segments showed confidence about IRS audits. Only one-quarter of those surveyed in each segment indicated they have some level of concern about IRS audits. Just 7% of those surveyed in the public school market indicated they are concerned or very concerned about IRS audits, while only 6% in the health care and other organizations segment reported being concerned or very concerned.
The survey found that third party administrators are used by 92% of public school respondents, and the research suggests respondents might feel more comfortable with their fiduciary responsibilities and less fearful of IRS audits if they are utilizing a third-party administrator (TPA).