Participant fee disclosure helps meet fee disclosure requirements

The Department of Labor (DOL) requires that retirement plan administrators (generally sponsors) distribute an annual fee disclosure document to all plan participants, terminated employees with account balances, eligible nonparticipating employees, and beneficiaries with account balances.

To help you comply with this requirement, Capital Group has created a participant fee disclosure document that includes details about the plan’s features and expenses, as well as investment descriptions, results, fees and expenses, and benchmark comparisons. The statement is updated quarterly and is customized for your plan.

Please review your plan’s fee disclosure and provide participants any information that’s required but not included. We’ve included third-party administrator (TPA) loan and distribution fees that have been provided to us, but you may want to contact your TPA to see if there are additional fees that need to be disclosed to participants. You’ll also need to disclose information about plan assets maintained outside our recordkeeping system, if any.

View your participant fee disclosure document

To see the fee disclosure for your plan, log in to the Plan Service Center and then:

  1. Click Fiduciary Center, and then select required notices.
  2. Click Participant Fee Disclosure to view the document.

The document is in Adobe® Reader® format. If you don’t have Adobe Reader, you can download it from Adobe’s website.

Timing

For new plans, fee disclosure must be provided to all eligible employees and beneficiaries before they can direct their assets to investments. Newly eligible employees and new beneficiaries with existing plans must also receive the fee disclosure information before they can direct their assets to plan investments. All eligible employees and beneficiaries must receive updated fee disclosure information at least annually.

If plan-related information or expenses change during a plan year, notice must be provided to participants 30 to 90 days prior to the effective date of the change. We will provide notices for you to distribute when we become aware of such a change to your plan.

Delivery

Fee disclosure documents must be affirmatively provided to participants. A paper copy may be delivered at work or by mail, for example. Making the document available is not enough.

Disclosure may be delivered electronically to participants (by emailing a PDF, for example) under circumstances outlined by the DOL. Electronic delivery may be acceptable for participants who have consented to receive this disclosure electronically or who use a computer as an integral part of their employment duties. For more information, see Meeting electronic delivery safe harbor requirements.

Use our notice delivery service to have fee disclosure automatically emailed to participants at no extra charge, or mailed to participants for a flat fee for each mailed document. To start this service, contact your TPA or call Capital Group at (877) 872-5159.

You can search for addresses of former employees who have account balances or for the addresses of their beneficiaries in the Plan Service Center:

  1. Click on Reports, and then click Standard Reports directly below the tab.
  2. Click on the Participant/Employee Data tab in the menu of report categories.
  3. Click on Participant Data Extract and then click Order in the Options.

This report will also help you identify any lost or missing participants. As the plan sponsor, you must perform a reasonable search to locate these participants and ensure they receive the required plan notifications. Look for any participants with a mail hold date in the report to identify participants with invalid addresses on our recordkeeping system.

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