U.S. Labor Department testifies before Senate Special Committee on Aging on 401(k) fee disclosure

Archived News Release — Caution: Information may be out of date.

Washington – Bradford P. Campbell, assistant secretary of labor for employee benefits security, today testified before the Senate Committee on Aging in support of improved disclosure of 401(k) fees and expenses.

Campbell’s testimony focused on the Labor Department’s three regulatory initiatives for expanding disclosure requirements to provide participants, plan fiduciaries and the public with better information about plan fees and expenses. His testimony described the department’s significant progress to date in the regulatory arena and highlighted enforcement activities that resulted in over $64 million in monetary results from 401(k) investigations.

“Workers need useful, concise information allowing them to compare plan investment options in an evolving financial marketplace. At the same time, plan fiduciaries need more comprehensive disclosures to enable them to fulfill their legal obligations to workers,” said Campbell. “Our three regulatory initiatives will target the specific needs of workers, plan fiduciaries and the public, striking the right balance of disclosure, utility and cost-effectiveness.”

In his testimony, Campbell discussed the three regulatory projects to expand fee disclosure to plan participants, to enhance reporting of fees and expenses to the public, and to increase disclosure to plan fiduciaries by service providers. He also expressed concern that the disclosures to workers in pending legislation would not provide concise, useful fee information, and that the government should not select and mandate specific investment products in 401(k) plans, preventing workers and employers from designing benefits that best serve their mutual needs.

“One of the Labor Department’s top priorities is to ensure that participants and fiduciaries have the information they need to make informed decisions. We are working as quickly as possible to implement regulations that foster fair, competitive and transparent prices for services as well as combat excessive or hidden plan fees,” Campbell concluded.

The full text of today’s testimony is available on the Labor Department’s Web site at www.dol.gov/ebsa under “Speeches and Testimony.”

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Archived News Release — Caution: Information may be out of date.