Plan Changing - but details lacking

[Guest papillon]

I've recieved notification in my Nov 1 Summary Plan Description that that effective January 1, 2008 - a new set of individual participant fees will be enacted for transactions that heretofore had been charged to the plan's general fund. The excerpt follows:

Effective January 1, 2008: Your account may be charged directly for certain

administrative expenses associated with issuing paper statements, distributing stock,

recordkeeping fees, Withdrawal fees, Distribution fees, dividend pass-thru fees, loan

fees, QDRO processing fees and some communication and other plan administration

expenses, instead of being paid by the trust or investment funds.

Attempting to be an informed plan participant - I contacted the Plan Administrator - Fidelity - and asked for a schedule of fees. I was told that although it was reasonable to request a more detailed description of the activities and associated fees that will be in effect Jan 01 - my plan sponsor (AT&T) had failed to provide it - and as such - the info was unavailable...

Since this change doesn't take effect until Jan 01, is the information not required to be made available until after the date upon which the change takes effect? (This is Fidelity's position.) My decision to conduct certain transactions would probably be predicated by the cost - if I had that information available.

Cheers,

Bjorn

[JanetM]

Hmmm, paid by you the participant or trust or investment funds? What's the difference. The only difference is that now you have a line item on your statement. Fees paid by trust or funds usually mean the amount is scraped off the daily NAV and the bigger you balance the more of the fee you pay. Example, Investment management fee charged to X fund. Your account is 10% of the total fund, you pay 10% of the fee.

Now as far as AT&T goes, they should be providing you with this information. As to when it has to be available there is not law or reg that gives one. Contact them again, ask when when the fee schedule will be available.

[BG5150]

I'm guessing, originally, the fees were being paid out of the forfeiture account, which would then have had no affect on participants' account balances.

To the OP: have you tried contacting you benefits department?

But don't the fees have to be at least disclosed in the SPD or SMM?