New Bill Requires 401(k) Fee Disclosures
On July 26, 2007 Representative George Miller (D-CA-7) introduced the 401(k) Fair Disclosure for Retirement Security Act (H.R. 3185) [PDF]. This bill would require 401(k) plans that allow employees to choose their investments to provide employees annual statements that would include itemized information about the fees charged to their accounts as well as other information about their investments. According to Congressman Miller's press release, the bill, which also includes other protections for 401(k) investors, is needed because “Hidden fees are eating into the retirement savings of millions of American workers without them knowing it.”
Under current law 401(k) plans are required to provide participants with periodic benefit statements that provide information about the dollar amounts accumulated in their accounts, but there is no requirement that these statements include information about fees that may have been charged to their accounts.
- Disclosure of fees and other information to 401(k) participants
- Disclosure of fees and conflicts to 401(k) plan administrators
- Increased government oversight and new Advisory Council
Read the Pension Rights Center's letter in support of H.R. 3185.
Read the House Committee on Education and Labor fact sheet about the bill.
Read the 401(k) Fair Disclosure for Retirement Security Act (H.R. 3185) [PDF].
Read about Individual Benefit Statements under current law
Read a Department of Labor fact sheet on 401(k) fees.
Read a Securities and Exchange Commission fact sheet on mutual fund fees and expenses.
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