What you need to know
Under the Participant Fee Disclosure regulation issued by the U.S. Department of Labor, retirement Plan Administrators must provide plan participants and beneficiaries with certain information regarding the plan and related fees and expenses.
What does this mean?
No fees are being added or increased at this time. Your quarterly participant statement will include a new “Fee Deductions” section listing any fees charged to your account during the quarter. In the past, these fees were displayed in the “Distributions/Other Deductions” column of your statement.
Where to Get More Information
- Download more Fee Disclosure and Statement Information
- Check out the Fee Disclosure FAQs below
- Investment and Expense Terminology Glossary
- Understanding your Participant Fee Disclosure document
- Employee Benefits Security Administration 401(k) Fee Disclosure Resource website (External link opens in new window)
- From DOL: 'Tips on Using the Fee and Investment Information From Your Retirement Plan'
"While there are a number of factors to consider in making sound investment decisions, start with the information provided by your plan. Your plan administrator should provide you with key information about certain investment options offered by the plan every year. This information is provided in a format that allows you to compare the investment options." (Employee Benefits Security Administration)
Q: To what types of retirement plans do the disclosure rules apply?
A: These rules generally apply to most retirement plans, except IRAs.
Q: When is the regulation effective?
A: The first set of initial disclosures for a calendar year plan must be made by August 30, 2012.
Q: Who will receive the disclosure?
A: The disclosure should be provided to all eligible plan participants and beneficiaries by the Plan Administrator.
Q: What fees will be disclosed?
A: The disclosure will include any fees that can be charged directly to your participant account, as well as the fees and expense information related to the investments offered under the plan.
Q: Has my employer approved these fees?
A: Yes. All fees and expenses related to the plan are included in the contracts and agreements between the plan sponsor and AUL.
Q: Are there any new fees as a result of these new rules?
Q: What information will be provided in the disclosure document?
A: The participant fee disclosure will contain:
- General plan-related information, such as making investment elections, any transfer restrictions, etc.
- The administrative and individual expenses applicable to the plan
- Information related to the investments offered under the plan, including:
- Performance and benchmarking information
- Fee and expense information
- Glossary of investment-related terms
- Available annuity options
Q: How often will I receive updates to the disclosure information?
A: The Participant Fee Disclosure document will be updated annually. Certain changes in the plan, the investments available, or in the related fees will trigger additional disclosures.
Q: What is changing on my statement?
A: After March 1, 2012, your quarterly statement will include a new “Fee Deductions” section listing any fees charged to your account during the quarter. In the past, these fees were displayed in the “Distributions/Other Deductions” column of your statement.