Thursday, June 14, 2012

GAO Study issued April 2012 - includes video illustrating revenue sharing

The General Accounting Office (GAO) released a study regarding 401(k) plans.  One of the recommendations is that DOL develop and implement more proactive approaches to plan sponsor educational outreach especially as it relates to plan fees. The study revealed that plan sponsors faced challenges in understanding the fees they paid and how participants are charged.

Included in the report is a link to a short video illustrating how revenue sharing arrangements can work.  The video is 5 minutes long and it shows how complicated this can be.

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