Conducting your annual plan review - DWS Investments

■■A quarterly statement under the ParticipantDisclosure Regulation disclosing fees and expensesactually charged to the participant for the quarterand a description of the services to which thechanges relate■■The plan’s Summary Annual Report (SAR)reflecting the plan’s current financial condition anda summary of the year’s income■■Information and forms on hardship withdrawals,participant loans and Qualified DomesticRelations Orders (QDROs), blackout periods,and Section 404(c), automatic enrollmentand QDIA disclosures must also be provided,where applicable■■A Summary of Material Modifications (SMM)should be distributed to plan participants if the planhas been materially amendedQDIA COMMUNICATION REQUIREMENTSCurrently, relief from certain liability exposure isgranted to fiduciaries where the default investmentoption under the plan is a QDIA and where the relatedQDIA rules are followed, including the followingdisclosures to participants:■■Circumstances under which assets may beinvested in a QDIA■■Right of participants and beneficiaries todirect investments■■Objectives, expenses and risk/return characteristicsrelated to the QDIA■■Right of participants and beneficiaries to directassets invested in the QDIA investment to anotherinvestment option, including any related restrictions,fees and expenses■■Sources of more information about the plan’s otherinvestment optionsThe DOL has issued proposed regulations regardingthe type of information participants must receive abouta plan’s QDIA option. Generally, this new disclosurefocuses on the QDIA’s investment objective, principalstrategy, principal risks, historical performance andfees and expenses. The purpose of the proposedregulation is to help ensure participants have sufficientinformation to make an informed investment decision.Once these proposed regulations are finalized, planfiduciaries will need to develop procedures to ensurecompliance with the final regulations.PLAN SPONSORS SHOULD ALWAYS BEPREPARED TO PROVIDE INFORMATIONTO PARTICIPANTS REGARDING ANY OFTHE FOLLOWING■■Type(s) of investment education available■■Whether services are provided by a single provideror multiple providers■■How to access the retirement plan (througheither a voice response system number, employeeservice center or 800-number or web address)■■Whether the plan’s optional services(e.g., participant loans) are being utilizedby plan participants■■How administrative services and investmentmanagement fees are paid■■Whether the investment performance ofindividual options is benchmarked againstappropriate market indices■■If sales charges, 12b-1 fees, surrender charges orother fees apply to the investment options■■Whether special funds or special classes of stockare available as investment options18 » Conducting your annual plan review