PSCA Survey Finds 403(b) Sponsors Need More Information on Their Plan Design, Including How Plan Expenses Are Paid
Nearly one-third (30.9 percent) of 403(b) plan sponsors are unsure as to whether they use revenue sharing to pay plan expenses, according to the latest 403(b)
"Our annual survey shows that 403(b) plans have made significant improvements in plan administration," said
Formal fee policy statement adoption
The PSCA annual survey also found low use of a formal fee policy statement to monitor the reasonableness of plan fees and services, with less than one-third (31.9 percent) of respondents indicating their use. One-fifth (21 percent) are not aware of what a fee policy statement is, according to the survey.
Focus on fee levelization
Over three-fourths (76 percent) of survey respondents indicated they are unfamiliar or only somewhat familiar with methods to level plan administrative fees among participants. Importantly, awareness of fee levelization decreases with plan size: 55.4 percent of plan sponsors with more than 1,000 participants indicated they are familiar with the practice, compared with only 6.4 percent of those with less than 50 participants.
"We are hearing a lot of buzz around equalizing or levelizing retirement plan administrative fees, especially as awareness of fiduciary responsibility heightens," said
Greater understanding of 403(b) plan design allows sponsors and fiduciaries to ensure regulatory compliance and fulfillment of their fiduciary responsibilities for the plan and its participants.
"In evaluating plan design, plan sponsors and fiduciaries should also empower participants with the resources necessary to make informed savings and investment decisions," said Friedman.
PSCA's 2017 403(b)
About the
About Principal(R)
Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals-offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at principal.com.
Principal, Principal and symbol design and
Cost of Living Will Soar in These 10 Cities in 2018
Ebensburg adopts 2018 budget with no tax increase
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News