Fee Disclosure Rides Along with Pension Relief

May 24, 2010 (PLANSPONSOR.com) – Apparently there’s more than pension fixes tucked away in that new jobs bill moving through the U.S. Congress.

The American Jobs and Closing Tax Loopholes Act (H.R. 4213), expected to be considered by the House this week, also includes provisions regarding retirement plan fee disclosure; provisions that are based on the 401(k) Fair Disclosure and Pension Security Act, according to a statement by Congressman George Miller (D-California), who authored that legislation that was subsequently approved by the Education and Labor Committee that Miller chairs last year.

“Guaranteeing the disclosure of hidden 401(k) fees will give Americans a fighting chance to strengthen their retirement and increase our nation’s future economic security,” said Miller in a press release. “We need to ensure that 401(k)s are run in the best interests of accountholders, not for the sake of boosting Wall Street’s bottom line. I would like to thank Chairman Levin and Congressmen Rangel and Neal for working with the Education and Labor Committee on these important provisions.”

Of immediate interest to plan sponsors, the bill:,

• Requires 401(k) service providers to disclose to employers all fees assessed against the participant’s account, broken down into three categories: plan administration and recordkeeping fees, investment management fees, and all other fees   
• Requires the U.S. Department of Labor to review compliance with new disclosure requirements and impose penalties for violations