Total Articles: 2
401(k) Fee-Transparency and Disclosure Rule Published
The Department of Labor (DOL) has published a final rule setting forth the responsibilities of plan administrators to disclose certain information, including information regarding fees and expenses, to participants and beneficiaries in participant-directed individual account plans, including most 401(k) plans. The final rule was published in the October 20, 2010 Federal Register. Although the rule takes effect December 20, 2010, it is not applicable to a plan until its first plan year beginning on or after November 1, 2011. For calendar year plans, that would be January 1, 2012.
Labor Department Proposes New Disclosures of Fees and Expenses.
After much discussion, the Department of Labor (DOL) has proposed regulations that would require participant-directed plans, including most 401(k) plans, to provide participants with basic disclosures concerning the fees and expenses charged in connection with available investment alternatives, and in connection with administration of the plan. The DOL’s concern is that plan participants often do not have access to complete information needed to make informed investment decisions. Specifically, the DOL has found that information on fees and expenses charged by fund managers and others is either not readily available or not easy to understand.
