“It’s been a non-event,” Charlie Nelson, president of Great-West Retirement Services, told PLANSPONSOR, referring to the scarce number of calls his company has received from participants about the fees listed on their defined contribution (DC) plan statements as a result of 404(a)(5) disclosure.
Jason Frain, vice president of 401(k) product management and development at Guardian Life Insurance Co., said that after the November 15 statements were sent to participants—the first statements to reflect the new regulations—his company saw very few participants take action or question their statements. “Honestly, we’ve seen very few participant calls or e-mails coming into our service area,” he said.
Aside from participant apathy, Frain attributes the lack of questions to the education that took place before participants received their statements, which he said may have helped curb confusion.
Although Nelson said he thinks the Department of Labor’s (DOL’s) “heart was in the right place” in creating the regulation, there is little interest from participants.