|
 Printer-Friendly Version
Archived News Release--Caution:
information may be out of date.
For more information call: (202) 693-4650
Secretary of Labor Alexis M. Herman today joined with
representatives of the American Bankers Association, the American Council of
Life Insurance, and the Investment Company Institute to release new 401(k) fee
disclosure tools. These new tools will help employers, especially small
employers, understand the investment fees and expenses which are charged to
401(k) retirement plans.
"Today 401(k) plans have over $1 trillion in assets. Fees
and expenses can result in lower retirement income for workers," Secretary
Herman said. "We challenged the pension community to create a simple and
uniform tool that small businesses can use to compare fees and thus lower
costs. Three industry groups worked together to develop this new format."
The "401(k) Plan Fee Disclosure
Form" features a flexible format which employers can use in whole or in
part, depending on the type of plan investments and services. In addition, the
form provides employers with a handy way to make cost-effective decisions and
compare the investment fees and administrative costs of competing providers of
plan services.
The 401(k) fee form contains basic information employers
may use in calculating and accounting for the total costs of operating a plan.
It contains: an overview of the purpose of the form and general description on
calculating 401(k) fees; a schedule which summarizes the total plan fees and
expenses; and additional schedules providing information on investment product
fees and estimates, plan administration expenses, one-time start up and
conversion expenses and service provider termination expenses.
A new Labor Department pamphlet, "A Look at 401(k) Fees For
Employers," highlights the overall obligations employers must fulfill in
operating a plan. The pamphlet, which employers may use in conjunction with the
form, describes the various fiduciary standards they must comply with under
federal pension law. The pamphlet lists 10 basic questions employers should
answer in considering fees and expenses paid for services. This includes
employers' obligation to assure that fees paid by 401(k) plans are reasonable.
The Secretary continues to encourage the pension community
to develop additional educational resources to help employers and workers
understand these issues.
Both the form and publication are available through the
department's website at www.dol.gov/dol/pwba or at the website
of any of the organizations: www.aba.com, www.acli.com or www.ici.org.
The public can also obtain this material from the American Bankers Association
at (800) 338-0626.
Archived News Release--Caution:
information may be out of date.
| 
