Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Benefits July 21, 2010
DC Plan Sponsors Respond to Regulator Actions
July 21, 2010 (PLANSPONSOR.com) – U.S. sponsors of defined contribution (DC) plans are focused on responding to Department of Labor (DoL) and Internal Revenue Service (IRS) activities, according to a new Mercer survey of more than 260 DC plan sponsors.
Reported by PLANSPONSOR staff
In response to increased DoL and IRS audit and enforcement activities, nearly 60% of plan sponsors surveyed by Mercer said they intend to take some kind of action in the next 12 months.
According to a news release, actions cited include:
- 65% plan to conduct an internal review of plan operations;
- 27% intend to engage their vendor to review administration; and
- 22% will conduct an independent operational compliance review.
In preparation for pending participant fee disclosure rules, 60% of plan sponsors indicate they will take some kind of action.
Actions cited include:
- 53% will conduct an administrative fee benchmarking study;
- 28% will reevaluate who (participant or employer) pays administrative fees; and
- 21% will change from a nontransparent bundled pricing arrangement to a transparent, fixed administrative fee pricing arrangement.
Other findings, according to the news release, include:
- 77% of plan sponsors intend to maintain their current level of employer contributions, despite the negative impact the market downturn has had on participant accounts;
- 45% of plan sponsors are considering adding some type of annuity option or minimum withdrawal benefit to their DC plan; and
- 25% of respondents intend to add investment advice in response to finalized Labor Department rules.
More information is at http://www.mercer.com.
You Might Also Like:
PLANSPONSOR Roadmap: SECURE 2.0 GPS
Experts review the road map for current and upcoming dates of the retirement legislation.
Retirement Contribution Limits, COLA Stay on Track With Continuing Resolution
The DC contribution limit was projected to be $23,000 for 2024, and the IRS should stay on track in implementing...
DC Plan Sponsors Should Pay Attention to Increased Litigation, Low Retirement Confidence
The first quarter of 2023 in the defined contribution market saw an uptick in lawsuits, many legislative and regulatory changes...