Based on a snapshot survey of retirement plans by the PSCA, it appears that participant fee disclosure has had little impact on participants — but it has caused 15.4% of employers to issue an RFP or RFI. Only 1.4% of participants asked questions about their disclosures, and very few have changed deferral rates or participation — although 2.3% did shift their asset allocation.
The bottom line: While its impact is minimal, fee disclosure does offer experienced and knowledgeable advisors the opportunity to start a meaningful dialogue with prospects who are not being properly advised.
