The Labor Department's long-awaited regulations on 401(k) fee disclosure are here at last, and the pressure is on. As pricing of defined-contribution plans becomes more transparent, companies could start looking for a new plan or provider.
It may seem odd that companies don't grasp what something costs. But an October study by consultancy Callan Associates indicates that while companies appreciate the importance of 401(k) fees, "the number of sponsors that are unclear about the status of their plan's fees is remarkable," says Lori Lucas, Callan's defined-contribution practice leader.
According to the survey, about 13% of plan sponsors don't know what administrative fees apply to their company stock fund. And of those whose plans use revenue sharing, about a fifth do not know how many of their funds pay revenue sharing.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
