WASHINGTON, D.C. – U.S. Rep. George Miller (D-CA), chair of the House Education and Labor Committee and author of 401(k) fee disclosure legislation, issued the following statement on the Department of Labor’s final rule released today requiring increased disclosure of fees 401(k) participants pay.
“I am pleased that the Department of Labor has taken another step to expose hidden fees contained in America’s 401(k) plans. While families are making difficult choices to put something away for their retirement, it is essential that they know how fees may be eating away at their savings and potentially delaying their retirement plans.
“Americans are understandably anxious about their retirement savings. This requirement is intended to provide accountholders with the critical information to make informed choices for their retirement future. I will continue work with the department on additional efforts to ensure fee disclosure through regulation and continue to push for my legislation that would codify these consumer protections into law for all 401(k)-style plans.”
There is currently no requirement for Wall Street to disclose how much in fees it takes out of Americans’ 401(k)-style accounts. With more than 50 million Americans relying on these plans to finance their retirements, hidden fees can make a big difference in families’ retirement security. According to the Department of Labor, a one-percentage point difference in fees would reduce overall retirement income by 28 percent over a lifetime of saving. Morningstar recently found that low fees were the number one predictor of good investment performance.
The 401(k) fee disclosure provisions were part of legislation approved by the House of Representatives in May.
“I am pleased that the Department of Labor has taken another step to expose hidden fees contained in America’s 401(k) plans. While families are making difficult choices to put something away for their retirement, it is essential that they know how fees may be eating away at their savings and potentially delaying their retirement plans.
“Americans are understandably anxious about their retirement savings. This requirement is intended to provide accountholders with the critical information to make informed choices for their retirement future. I will continue work with the department on additional efforts to ensure fee disclosure through regulation and continue to push for my legislation that would codify these consumer protections into law for all 401(k)-style plans.”
There is currently no requirement for Wall Street to disclose how much in fees it takes out of Americans’ 401(k)-style accounts. With more than 50 million Americans relying on these plans to finance their retirements, hidden fees can make a big difference in families’ retirement security. According to the Department of Labor, a one-percentage point difference in fees would reduce overall retirement income by 28 percent over a lifetime of saving. Morningstar recently found that low fees were the number one predictor of good investment performance.
The 401(k) fee disclosure provisions were part of legislation approved by the House of Representatives in May.
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