Plan sponsors also say compliance will be their top area of focus over the next year.
Eighty-four percent of plan sponsors took steps to ensure that their plans are Employee Retirement Income Security Act (ERISA) section 404(c) compliant. The percentage of plans that did not know whether their plan is 404(c) compliant or not declined relative to prior years.
The proportion of DC plan sponsors that reviewed their plan’s investment policy statement (IPS) in the past year rose to 63% in 2012 from 55% in 2011. More plan sponsors have a written plan fee payment policy in place (41%) than in 2011 (38%), either as part of their IPS or as a separate document. Compliance with required Department of Labor (DOL) disclosures ranked third in the list of plan sponsors’ areas of focus surrounding plan fees for 2013, after ensuring that fees are reasonable, and sufficiently monitoring and documenting plan fees.