A new study released by insurance industry researcher LIMRA shows that half of defined contribution employees are still not aware of how much they pay in annual fees and expenses, despite fee disclosure requirements added in 2012. That number — exactly 50% — remained unchanged from 2012 to 2013. LIMRA surveyed employees before and after the disclosure communications were conducted.
“There was much speculation on how consumers would respond to the disclosure notices, yet our consumer surveys and discussions with plan service providers indicate that there has been limited reaction to learning about their fees and expenses,” says Alison Salka, corporate vice president and director of LIMRA Retirement Research. “The disclosure notices — or the discussion of them — did seem to improve the knowledge of those who believed they didn’t pay any fees or expenses,” adds Salka.
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