Council urges ‘useful’ 401(k) disclosure

The American Benefits Council told the U.S. Department of Labor that it supports fee disclosures related to 401(k) plans, but urged the department to ensure that the disclosures provide useful information.
In April, The DOL had sent out a request for information recently regarding retirement plan fee disclosures and the Washington-based American Benefits Council submitted information to the department (InvestmentNews, April 24).
“Above all, any new disclosures must be useful to participants,” said council president James A. Klein in a statement.
“It is essential that fee disclosures support rather than hinder workplace plans that make it easy for employees to save money for retirement through payroll deduction.”
Among other issues, the Council’s letter to the Department of Labor outlined best practices among employers and service providers as well as the costs of disclosure and the importance of investment education.