In a 2012 survey, Pensions and Investments and Rocaton Investment Advisors polled 221 DC executives from firms managing $374 billion about their views on retirement income, fee disclosure regulations and stable value funds.
Though 73% of providers indicated that they were likely to offer retirement income, the reasons they cited for not making it available (in order of importance) were:
1. products are not mature or broadly adopted;
2. lack of fiduciary protection; and
3. portability.
Fee disclosure had little impact on larger plans, which seem to be disclosing that information already. And firms without stable value funds were unlikely to add them in the future, as fees continue to rise in a market with more demand than supply and participants remain in the dark about how stable value funds work.
