Chair Miller Applauds Inclusion of 401(k) Fee Disclosure in H.R. 4213
WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), chair of the House Education and Labor Committee, today applauded the inclusion of 401(k) fee disclosure as part of the American Jobs and Closing Tax Loopholes Act (H.R. 4213), which is expected to be considered by the House next week.
“Guaranteeing the disclosure of hidden 401(k) fees will give Americans a fighting chance to strengthen their retirement and increase our nation’s future economic security,” said Miller. “We need to ensure that 401(k)s are run in the best interests of accountholders, not for the sake of boosting Wall Street’s bottom line. I would like to thank Chairman Levin and Congressmen Rangel and Neal for working with the Education and Labor Committee on these important provisions.”
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 Accountably Office found that a one-percentage point difference in fees could cut retirement assets by nearly 20 percent.
Provisions included in H.R. 4213 regarding fee disclosure are 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. H.R. 4213 also includes provisions to make modest adjustments to funding requirements so plan sponsors will not have to choose between making forced cash contributions, freezing plans or cutting jobs.
More information on the 401(k) and pension provisions in H.R. 4213
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