Half of defined contribution participants do not know how much they pay in plan annual fees and expenses, a figure unchanged by the implementation of fee disclosure regulations in 2012, new research shows.
LIMRA, Windsor, Conn., discloses this finding in a summary of results from a survey of defined contribution plan participants. LIMRA conducted the poll before and after plan participants received information about their plans’ fees and expenses to determine how effective the disclosure statements were and how participants would react.
Prior to receiving disclosure notices, 50 percent of participants said they did not know how much they paid in fees and expenses; the same portion did not know subsequent to receiving the notices, the study reveals.
“The disclosure notices — or the discussion of them — did seem to improve the knowledge of those who believed they didn’t pay any fees or expenses,” says Alison Salka, corporate vice president and director of LIMRA Retirement Research. “There are nearly 75 million workers who participate in defined contribution plans in the United States.