Plan sponsors react to feds' enforcement efforts

With the DOL and IRS breathing down their necks in the form of increased audit and regulation enforcement efforts, 60% of defined-contribution (DC) plan sponsors are taking action in response.
What are they doing to keep their plans off the feds’ radar screens?

  • Conducting an internal review of plan operations (65%)
  • Working with the plan provider to review administration (27%), and
  • Conducting an independent operational compliance review (22%).

Those figures come from a recent Mercer survey of more than 260 DC plan sponsors.
Reaction to new rules
And in response to the pending fee disclosure rules, plans sponsors will:

  • Conduct an administrative fee benchmarking study (53%)
  • Evaluate who (participants or the employer) is paying the administrative fees (28%), and
  • Change from a bundled fee arrangement to a more transparent, fixed administrative fee arrangement (21%).

Employee focus

In addition, 45% of plan sponsors plan to add some type of annuity option or minimum withdrawal benefit to their DC plan. Another 25% plan to start offering investment advice.
Has your company taken any action in response to the feds’ increased auditing and enforcement efforts? Let us know in the Comments Box below.