U.S. Labor Department testifies before House Ways and Means Committee 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Archived News Release — Caution: Information may be out of date.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 U.S. House of Representatives Ways and Means Committee 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 its enforcement activities, which have resulted in more than $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.”

Campbell told the committee that the Labor Department has the authority under current law to require additional disclosure. Campbell said that the department expects to issue final regulations in a few weeks addressing disclosures to the public, and will be proposing within several months regulations addressing specific and comprehensive disclosures to plan fiduciaries by service providers. Furthermore, the department expects to issue a proposed regulation requiring disclosure by plans to participants this winter.

“The Labor Department’s top priority is ensuring that participants and fiduciaries get the information necessary 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Archived News Release — Caution: Information may be out of date.