pooled accounts & quarterly/annual statements

[TPApril]

Takeover MP plan allows participants to either self direct in brokerage accounts, or choose the pooled account, no combination thereof. Participants in pooled account receive annual accrued statements only. Should they be receiving quarterly statements with updated balances?

[Bird]

I don't think so.

[My 2 cents]

There ought to be access, through the internet, for up to date balances on demand.  That should be a minimum service level for being in the marketplace (especially when self-directed brokerage accounts are made available).  This isn't 1980!

[hr for me]

what investments are in the pooled account? How often are they valued? 

It's been a long time since I have seen a plan with annual accounting, so I do agree with My2Cents.... but if valuation is an issue, I could see how annually could be best.

[RatherBeGolfing]

Since the participants have an option of an SDBA or a pooled managed account, could the pooled account option itself be considered a DIA?  

I would be tempted to play it safe and treat it like a DIA and issue quarterly statements to the participants in the pooled account.  The value wouldn't change until after the annual valuation of the pooled assets, so it would be pretty simple to take care of.

[ESOP Guy]

1 hour ago, RatherBeGolfing said:

Since the participants have an option of an SDBA or a pooled managed account, could the pooled account option itself be considered a DIA?  

 

This has always been an interesting question.  For a slightly different version from the ESOP world...

If the ESOP offers as one of the diversification choices the company's 401(k) most people seem to understand you have to offer fee and ROR notices to people as that is a DIA choice.  But what if they choose to do nothing?  Is that still a choice?  Do you have to get them some kind of fee and ROR notice for the ESOP?  Even if the ESOP has nothing but company stock?  Most people I know say "no", but I know a few people who say "yes". 

So is failing to go to a SDBA a "choice" by not making any choice?  It isn't obvious the answer is "no" and Rather might be on to something.