Final 401(k) Fee Disclosure Regulations
On October 20, 2010, the Department of Labor issued final regulations that 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 regulations also include rules for disclosing information about the plan’s investment options. These rules apply only to plans where employees are able to choose their own investments. The rules were effective December 20, 2010 and will apply to participant directed individual account plans no later than August 30, 2012 for required disclosures other than quarterly disclosures. Quarterly disclosures must comply with the new rules no later than November 14, 2012.
The regulations are divided into two categories:
General plan information can initially be disclosed in the Summary Plan Description. It must be provided on or before the date on which a participant can first direct investments and annually thereafter. Individual fees actually charged to participants must be disclosed in dollars and reported quarterly. They may be provided as part of the individual benefit statement.
The regulation includes a statement that the plan fiduciaries are responsible for prudently selecting and monitoring any record-keeping, investment management, or other firms that provide services to the plan. The plan administrator is responsible for compliance with these disclosure rules.
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.
Looking for help with your retirement plan?
If you have a problem with your retirement plan, free help may be available from the U.S. Administration on Aging's network of Pension Counseling and Information Projects. Find help now.
What's your story?
We're hearing from people around the country who are worried about cuts to their pensions. These are their stories.
Roadmap to retirement
Let our roadmap to helpful information about retirement plans for private-sector workers put you on the path toward a secure retirement. Get started.
PensionHelp America connects people who need help with their pension, 401(k), and other retirement plans with the pension counseling projects, legal services providers, and government agencies that can help answer their questions. Visit www.pensionhelp.org.
Get E-mail Updates
Retirement USA is a national initiative that is working for a new retirement system that, along with Social Security, will provide universal, secure, and adequate income for future retirees. Visit the website.