Although the deadline for disclosure is on the horizon, it has had little impact on plan sponsors. According to Keith Clark, co-founder of DWC ERISA Consultants, "A vast majority of plan sponsors have been ignoring this. They are just starting to get hit with press releases that disclosures are coming and we are not aware of any service provider that has delivered the newly required report or service agreements yet."
In the past, simply having a 401(k) was deemed a sufficient company benefit. We are transitioning into an era where employees will better be able to differentiate between a good and a bad 401(k). Fees will become a significant component of that evaluation.
The water behind the dam has been building, disclosure is coming, and employees will become the check and balance on fees in their 401(k) plan. When the dam bursts, are you ready for new clients?
Mike Lissner is a partner in Acropolis Investment Management LLC, a St. Louis-based, fee-only wealth management firm, serving individual investors and 401k plan sponsors. Acropolis specializes in retirement planning and currently has over $750 million in AUM. For more information visit www.acrinv.com.