Michael Barry, president of Plan Advisory Services Group, said fee disclosures started as a project by the Department of Labor (DOL) to help participants make better investment decisions, but it has turned into a focus on helping plan sponsors make better provider choices and investment policies. He cited the recent court decision in ABB v. Tussey (see “Employer to Pay for Failing to Monitor RK Costs”); when a sponsor gets knowledge that it is paying more for a service than a consultant reports is the average, the sponsor must act on that information as soon as possible.
When sponsors get fee disclosure information from providers, Barry said they need to ask three questions:
- Did they tell me what I need to know?
- What did they tell me?
- What do I need to do about it?