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Release Date: October 24, 2007
Release Number: 07-1662-NAT
Contact Name: Gloria Della/Richard Manning
Phone Number: 202.693.8664/202.693.4676
Washington – Bradford P. Campbell, assistant
secretary of labor for employee benefits security, today testified
before the Senate Committee on Aging in support of improved disclosure
of 401(k) fees and expenses.
Campbell’s testimony focused on the Labor
Department’s three regulatory initiatives for expanding disclosure
requirements to provide participants, plan fiduciaries and the public
with better information about plan fees and expenses. His testimony
described the department’s significant progress to date in the
regulatory arena and highlighted enforcement activities that resulted in
over $64 million in monetary results from 401(k) investigations.
“Workers need useful, concise information allowing
them to compare plan investment options in an evolving financial
marketplace. At the same time, plan fiduciaries need more comprehensive
disclosures to enable them to fulfill their legal obligations to
workers,” said Campbell. “Our three regulatory initiatives will
target the specific needs of workers, plan fiduciaries and the public,
striking the right balance of disclosure, utility and
cost-effectiveness.”
In his testimony, Campbell discussed the three
regulatory projects to expand fee disclosure to plan participants, to
enhance reporting of fees and expenses to the public, and to increase
disclosure to plan fiduciaries by service providers. He also expressed
concern that the disclosures to workers in pending legislation would not
provide concise, useful fee information, and that the government should
not select and mandate specific investment products in 401(k) plans,
preventing workers and employers from designing benefits that best serve
their mutual needs.
“One of the Labor Department’s top priorities is
to ensure that participants and fiduciaries have the information they
need to make informed decisions. We are working as quickly as possible
to implement regulations that foster fair, competitive and transparent
prices for services as well as combat excessive or hidden plan fees,”
Campbell concluded.
The full text of today’s testimony is available on
the Labor Department’s Web site at www.dol.gov/ebsa under “Speeches
and Testimony.”
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
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