June 25, 2012
Department of Labor’s (DOL) participant fee disclosure requirements go into
effect August 30, and the majority of plan sponsors surveyed are ready. ---
of June 18, 24% of the 109 respondents to a survey by Broadridge Financial
Solutions indicated they had not finalized processes to
communicate the fees, and an additional 5% still need help understanding
the regulation. Only 13% of respondents indicated they have not made any
preparations for “day two” of the new regulations when participants receive
their annual fee notice.
to the survey, there is some concern about participant reaction to the new fee
disclosures, with the majority of respondents (57%) noting they expect
participants to be somewhat interested upon receipt of their annual fee notice,
and 24% expecting participants to ask a lot of questions and even ask plan
sponsors to change plan providers.
key to staying ahead of participant reaction—whether positive or negative—is
preparation and education,” said Timothy Slavin, senior vice president, defined
contribution, Broadridge. “Firms need help to arm plan sponsors with detailed
information to answer participants’ questions, as well as have call centers
geared up and prepared to respond to inquiries in a timely fashion.”
the respondents stated they could use additional support in creating
educational materials for participants, and 28% noted that they need help with
e-delivery consent gathering.
ahead, firms are already thinking about what changes they anticipate making for
next year’s fee disclosures, with 29% hoping to introduce e-delivery for
participants and 26% planning to look for new ways to stay competitive.
is just the beginning. There is great opportunity for firms to enhance their
services and ensure that they are providing the best offering for plan sponsors
and participants,” added Slavin.
results of the survey can be viewed online here.