Participant disclosure FAQs

Information about certain plan provisions plus plan-level and individual-level fees must be disclosed. After the initial disclosure is made, participants must receive updated information at least annually and notice of changes 30 to 90 days prior to the effective date of a change requiring disclosure.

The following information must be disclosed:

  1. An explanation of the circumstances under which participants and beneficiaries may give investment instructions
  2. An explanation of any specified limitations on such instructions under the terms of the plan, including any restrictions on transfer to or from a designated investment alternative
  3. An identification of any designated investment alternatives offered under the plan
  4. An identification of any designated investment managers
  5. For plans offering qualifying employer securities as an option: a description of or reference to plan provisions relating to the exercise of voting, tender and similar rights appurtenant to an investment in a designated investment alternative as well as any restrictions on such rights
  6. A description of any “brokerage windows,” “self-directed brokerage accounts” or similar plan arrangements that enable participants and beneficiaries to select investments beyond those designated by the plan

Participants must be told of the gross amount of any fees and expenses for general plan administrative services (e.g., recordkeeping, compliance and plan document services, and trustee/custodial fees), which may be charged against the individual accounts of participants and beneficiaries and are not reflected in the total annual operating expenses of any designated investment alternative, as well as the basis on which such charges will be allocated (e.g., pro rata, per capita).

Participants must be told of any fees and expenses that may be charged against the individual account of a participant or beneficiary on an individual, rather than on a plan-wide, basis (e.g., fees for processing plan loans or qualified domestic relations orders, fees for brokerage windows, commissions, sales charges, redemption fees) and which are not reflected in the total annual operating expenses of any designated investment alternative.

We created the participant fee disclosure document to help you meet your disclosure requirements. Information about your plan was pulled from your customized enrollment booklet, and is updated monthly as needed. Investment returns are updated quarterly.

Please review the document for your plan and provide participants with any information that’s required but not included (e.g., information about plan assets maintained outside our recordkeeping system).

Certain content can be customized, as applicable, including:

  • Detailed breakdown of plan-level expenses and the amount participants may incur throughout the year
  • Third-party fees for TPAs and fee-based advisers, including TPA fees for multiple types of transactions
  • Fees for self-directed brokerage accounts not maintained on the Capital Group recordkeeping system
  • Contact information for multiple plan contacts

 

Contact us at (800) 421-6019 for details.

The disclosure can be delivered in paper form, either by mailing a paper copy to each participant or delivering them in-person at an employee's worksite. (Simply posting a required disclosure in an employee common area is not acceptable). Alternatively, disclosure can generally be delivered electronically, provided certain rules are followed. For more information, see A guide to electronic delivery of participant disclosures.

Participants who must receive the disclosure include:

  • All eligible employees (including those who choose not to make plan contributions)
  • Terminated employees with account balances
  • Beneficiaries with account balances
  • Alternate payees with account balances
     

Also, newly eligible employees and new beneficiaries/alternate payees must receive the disclosure document before they are first able to direct investments in the plan.

The disclosure document is available on the plan sponsor website. After logging in, click the Plan Administration tab at the top of the screen and then select Plan Notices. Scroll to the Documents section and click on the participant fee disclosure link. Participants can also access the disclosure document on the participant website by selecting the Plan information tab after logging in and clicking the fee disclosure link.

A notice must be provided to participants 30 to 90 days prior to the effective date of certain changes. We will provide you with a supplemental change notice document for this purpose and will incorporate the new information into the disclosure document for the next monthly update.

The following are examples of changes that will require disclosure to participants:

  • Changes to investment options offered in the plan (both adding or removing options)
  • Modified provisions that would require participants to pay additional fees. These include, but are not limited to, changes to loan fees, distribution fees (if applicable), and adding or removing periodic payments (the participants are charged fees when these are set up on the recordkeeping system)
  • Adjustments in the amount of plan-level expenses incurred by participants throughout the year
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and/or summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.