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Bill Requires 401(k) Fee Disclosures

On April 21, 2009, Representative George Miller (D-CA-7) introduced the 401(k) Fair Disclosure for Retirement Security Act of 2009 (H.R. 1984) [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. “Especially during these troubling economic times, workers need to be able to account for every penny taken from their hard-earned savings,” said Congressman Miller in a press release.

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

• Index fund option required for all 401(k) plans

Read the Pension Rights Center’s letter in support of H.R. 1984.

Read the PRC’s statement about H.R. 1984.

A similar bill, S. 401, has been introduced by Senators Harkin and Kohl in the Senate.

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.

In 2007, Rep. Miller introduced a similar bill in the 110th Congress, H.R. 3185.