Participant Level Fee Disclosures

[ERISA1]

Hi - I am picking up a plan that has (1) self directed investments for 401(k) accounts (at John Hancock); and (2) Trustee Directed ("pooled") investments for Profit Sharing Contributions. Participants may not elect to self-direct their profit sharing accounts.

If the plan were entirely Trustee Directed, it would be exempt from Participant-level disclosure requirements. However, given that part of the plan is self-directed, does anyone know whether the pooled account becomes subject to participant disclosure? {Remember, participants DO NOT have a choice about investing in the pooled account. They cannot self direct profit sharing funds; and they cannot elect to invest 401(k) accounts in the pooled profit sharing account.}

I'm thinking the pooled account is not 'Designated Investment Alternative' (DIA), but I can't find anything on point.. What do you think?

Thanks very much.

[Belgarath]

I agree. If you look at the definition of the DIA from trhe regulation (2550.404a-5(h)(4)) it doesn't include investments over which the participant has no direction or control. Emphasis is mine.

(4) Designated investment alternative means any investment alternative designated by the plan into which participants and beneficiaries may direct the investment of assets held in, or contributed to, their individual accounts. The term “designated investment alternative” shall not include “brokerage windows,” “self-directed brokerage accounts,” or similar plan arrangements that enable participants and beneficiaries to select investments beyond those designated by the plan.