An Important Step in the Process of Enhancing 401(k) Fee Disclosure

On February 2, the Department of Labor (DOL) issued final regulations concerning 401(k) disclosures. The rule requires companies that administer defined contribution plans to disclose administrative and investment costs to employers who sponsor the plans. We issued the following statement in response to the final rule:

The DOL’s final rule for service provider disclosure is another important step in enhancing 401(k) fee disclosure, a process the mutual fund industry has long supported. While the mutual fund industry has always had a strong commitment to ensuring that plan sponsors understand the fees and costs associated with their plans, the final rule will ensure greater information consistency across the retirement plan services marketplace. We’re pleased that the DOL has moved the effective date to July 1 to allow the industry additional time to digest the final rule and to fine-tune their compliance systems. We are also pleased that the DOL will consider the issue of summary disclosure in a separate rulemaking—allowing that issue to undergo the regular comment process. We continue to review the entire final rule in detail.

For more from ICI on 401(k)s, visit ICI’s 401(k) resource center.