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%).
- 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%).
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.