Many 401(k) participants have been unaware that service provider fees come out of their retirement plans. The new participant transparency disclosure regulation aims to make that reality abundantly clear.
“People have been selling these plans and saying they’re free. That isn’t correct,” says Sara Richman, vice president-product management, Great-West Retirement Services.
Now, notes Celia Rafalko, managing principal-CEO, Piedmont Independent Fiduciaries, “participants are being faced with employers saying, ‘You know that 401(k) plan you have? It isn’t free.’”
Also see main article: “Transparency.”
But here’s the question: Are participants and those eligible to join plans even reading the transparency disclosures they’ve received since last August?