U.S. Labor Department seeks comments on fee disclosure for 401(k)-type plans

Archived News Release — Caution: Information may be out of date.

WASHINGTON — The U.S. Department of Labor's Employee Benefits Security Administration will publish in the April 25 edition of the Federal Register a "request for information" (RFI) to assist the department in improving information provided to an estimated 41 million participants about administrative and investment fees and expenses charged to 401(k)-type plans.

Fees and expenses can have a significant impact on workers' retirement savings. Thus, the Labor Department has undertaken three projects to improve fee disclosure to plan participants, enhance reporting of fees and expenses to the government, and increase disclosure to plan fiduciaries by service providers.

The RFI requests comments on fee and expense disclosure issues affecting participants and beneficiaries of 401(k)-type plans governed by the Employee Retirement Income Security Act (ERISA). Specifically, the department seeks information concerning what administrative and investment-related fee and expense information participants should consider when investing their retirement savings, the manner in which the information should be furnished to participants and who should provide that information.

Reports by the 2004 ERISA Advisory Council and the General Accountability Office (GAO) provided suggestions for possible improvements in participant disclosure. In a recent report, GAO recommended both statutory and regulatory changes to improve disclosure of fees and expenses to plan fiduciaries and participants.

Written comments on the fee disclosure RFI should be submitted electronically by email to e-ori@dol.gov or through the federal e-rulemaking portal at www.regulations.gov. Paper-based comments should be sent to the Office of Regulations and Interpretations, Employee Benefits Security Administration, Room N-5669, U.S. Department of Labor, 200 Constitution Ave., N.W., Washington, D.C. 20210, Attention: Fee Disclosure RFI.

Archived News Release — Caution: Information may be out of date.