Chairman Miller Statement on 401(k) Fee and Conflicts Disclosure Rules to Plan Sponsors
WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), chairman of the House Education and Labor Committee and author of 401(k) fee disclosure legislation, issued the following statement on the Department of Labor’s interim final rule released today requiring greater disclosure of fees and conflicts of interests contained in 401(k) plans to plan sponsors.
“I am pleased that the Department of Labor has taken this important step to ensure that employers have information on the fees and conflicts of interest contained in the 401(k) plans they sponsor. With families making the difficult decision to put something away for their retirement, it is vital that these plans work for the benefit of plan participants, not Wall Street’s bottom line. Americans are understandably anxious about their retirement savings, and this rule is intended to provide employers with the critical information needed so that workers can get a good deal. That is why I will continue to support the department’s efforts on fee disclosure through regulation and continue to fight for my legislation that would codify these consumer protections into law for all 401(k)-style plans.” There is currently no requirement for Wall Street to disclose how much in fees it takes out of Americans’ 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. According to the Department of Labor, a one-percentage point difference in fees would reduce overall retirement income by 28 percent over a lifetime of saving.
The 401(k) fee disclosure provisions were part of legislation approved by the House of Representatives in May.
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