New regulations being proposed by the Labor Department would require employers to disclose more information—and in a clearer format—about fees & investments in company 401(k) plans, now the single most-popular retire-savings device for millions of Americans, a USAToday article this morning says.
The Department of Labor is going to be accepting written comments in response to the proposed rules until September 8, 2008.
To an extent, some disclosure is already required by plans, but compliance with §404 (c)’s disclosure requirements is voluntary and doesn’t extend to participants & beneficiaries in all IRAs.
“These proposals would establish uniform, basic disclosures for such participants and beneficiaries, without regard to whether the plan in which they participate is a § 404 (c) plan. In addition, the proposal would require participants & beneficiaries to be provided investment-related information in a form that encourages & facilitates a comparative review among investment options.” (See Proposed Rules)