06.08.10
The 401(k) fee disclosure provisions were part of the American Jobs and Closing Tax Loopholes Act (H.R. 4213), important legislation that the House of Representatives approved and sent to the Senate on May 28. Today, Sen. Max Baucus introduced proposed changes to the legislation that included the elimination of the requirement that 401(k)-type plans disclose all fees that participants pay.
Federal law does not require the disclosure of fees taken out of workers’ 401(k)-style accounts. With more than 50 million Americans relying on these plans to finance their retirements, hidden fees can make a big difference in families’ retirement security. The Government Accountability Office found that a one-percentage point difference in fees could cut retirement assets by nearly 20 percent.
Provisions regarding fee disclosure were based on the 401(k) Fair Disclosure and Pension Security Act, which was authored by Miller and approved by the Education and Labor Committee last year.
Chairman Miller: Senate Elimination of 401(k) Fee Disclosure ‘Unacceptable’
WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), the chair of the House Education and Labor Committee, today said that the U.S. Senate’s proposed elimination of important reforms to expose hidden 401(k) fees was “unacceptable” and vowed to fight to include the reforms. “It is unacceptable for the Senate to eliminate this key consumer protection for the 50 million Americans who have 401(k) plans. We are going to continue to fight to put back these key reforms in this bill,” said Miller. “Once again, this just shows how the heavy hand of Wall Street trumps the concerns of hardworking Americans. At a time when America’s middle class has already lost their retirement savings because of the financial scandals, they shouldn’t also be losing out because of excessive or hidden fees.”The 401(k) fee disclosure provisions were part of the American Jobs and Closing Tax Loopholes Act (H.R. 4213), important legislation that the House of Representatives approved and sent to the Senate on May 28. Today, Sen. Max Baucus introduced proposed changes to the legislation that included the elimination of the requirement that 401(k)-type plans disclose all fees that participants pay.
Federal law does not require the disclosure of fees taken out of workers’ 401(k)-style accounts. With more than 50 million Americans relying on these plans to finance their retirements, hidden fees can make a big difference in families’ retirement security. The Government Accountability Office found that a one-percentage point difference in fees could cut retirement assets by nearly 20 percent.
Provisions regarding fee disclosure were based on the 401(k) Fair Disclosure and Pension Security Act, which was authored by Miller and approved by the Education and Labor Committee last year.
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