Nearly all sponsors of defined contribution plans report no change in the investment decisions of plan participants as a result of fee disclosure information, new research reveals.
Plan Sponsor Council of America, Chicago, released this finding in a survey on the impact of fee disclosure regulations on defined contribution plan participants. The survey, conducted in October, received 176 responses from defined contribution plans sponsors.
Plan sponsors with 1-99 participants (eligible employees with an account balance) accounted for the largest share of the respondents (27.8%). Plans with 100-999 participants, 1,000-4,999 participants and 5,000-plus participants constituted 21.6%, 26.1% and 24.4%, respectively, of the remaining respondents.
More than 9 in 10 plans sponsors (95.9%) report no change in the investment decisions of plan participants as a result of fee disclosure information, the survey shows. Less than 3% of the respondents identified changes in investment allocations, the highest percentage (2.6%) recorded among plan sizes servicing 100-999 plan participants.
The survey found no changes in participant behavior when respondents were asked about participants’ changes in deferral rates or participation rates.