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Proposed 401(k) Fee Disclosure Regulations
On July 23, 2008, the Department of Labor proposed regulations that would require private retirement savings plans, such as 401(k)s, to tell employees how much they are being charged in record-keeping, investment management and other fees. The proposed regulations also include rules for disclosing information about the plan’s investment options. These proposed rules apply only to plans where employees are able to choose their own investments. Public comments on the proposal were due on September 8, 2008. Following review of the comments, the Department of Labor will issue final regulations.
The proposed regulations are divided into two categories:
All information must be provided according to current Department of Labor rules. These rules require that the plan obtain an affirmative consent from employees without ready access to a computer at work before the plan can provide disclosures by e-mail or other electronic means; and that the information disclosed must be presented in a manner that can be easily understood by the average plan participant.
The proposed regulations include a statement that the plan trustees are responsible for prudently selecting and monitoring any record-keeping, investment management, or other firms that provide services to the plan.
Read the Department of Labor’s press release and fact sheet on the proposed regulations.
Read the Pension Rights Center’s comments on the proposed regulations.
Read the Consumer Federation of America’s comments.
Read a letter sent by Rep. Miller,Rep. Andrews, Sen. Kennedy, Sen Kohl and Sen Harkin.
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