SOURCE: The Plan Sponsor Council of America

The Plan Sponsor Council of America

April 03, 2012 12:47 ET

Will the New 408(b)(2) Regulations Have an Impact on 401(k) Plan Design?

Find out by Participating in PSCA's 55th Annual Survey

CHICAGO, IL--(Marketwire - Apr 3, 2012) - The Plan Sponsor Council of America (PSCA) announces the release of its 55th Annual Survey questionnaire. For more than 50 years, PSCA has surveyed plan sponsors to track evolving trends in employer-sponsored defined contribution plan features, including the impact of regulatory change. Those who complete the survey questionnaire receive a free copy (a $395 value) of the results.

"Will the new fee disclosure rules result in a review of more than the fees?" said David Wray, PSCA's President. "Will sponsors benchmarking their plan fees with providers include changes in plan design as part of a Request for Information (RFI) or Request for Proposal (RFP)?"

Some plan features we will be watching that may be impacted by new regulations include:

  • Investment fund lineups
  • Number of investment funds
  • Fully bundled services and open architecture
  • Plan loans
  • Investment advice
  • The use of electronic distribution to communicate with plan participants

In addition, the 55th Annual Survey will report plan practices and trends for:

  • Automatic Enrollment - Has availability been leveling off? What about the default investment and auto-escalation feature?
  • Roth 401(k) - Is availability becoming the norm at small plans? Are large plans continuing to add Roth? Is participant usage continuing to increase?
  • Participation Rates and Account Balances - How has stock market volatility affected participation? How are participants investing their plan assets?
  • Target-Date Funds - The majority of plans offer a target-date fund as a plan option. The asset allocation to these funds has increased rapidly the last few years. Has it increased again or begun to stabilize?

PSCA's Annual Survey reports also are invaluable for financial professionals seeking a cutting edge understanding of the defined contribution plan marketplace. They are an effective tool to help clients benchmark their plans as data is reported by plan size and type. You can help make the data more valuable by encouraging your clients to participate in the survey.

The deadline for survey responses is May 11, 2012. More information on completing the survey is available at http://www.psca.org/55th-annual-survey. Advisors interested in encouraging their clients to participate in the survey can contact PSCA at research@psca.org or 312.419.1863 for more information.

About the Plan Sponsor Council of America
The Plan Sponsor Council of America (PSCA), a national non-profit association of 1,200 companies and their six million employees, advocates increased retirement security through profit sharing, 401(k), and related defined contribution programs to federal policymakers and makes practical assistance with profit sharing and 401(k) plan design, administration, investment, compliance, and communication available to its members. PSCA, established in 1947, is based on the principle that "defined contribution partnership in the workplace fits today's reality." PSCA's services are tailored to meet the needs of both large and small companies with members ranging in size from Fortune 100 firms to small, entrepreneurial businesses.

Contact Information

  • Press Contact
    David Wray
    President
    Plan Sponsor Council of America
    312.419.1863
    davidw@psca.org