Advisers ponder full disclosure in 401(k)s

Advisers are said to be baffled about how much information should be passed on to participants in 401(k) plans.
OCT 02, 2007
Advisers are baffled about how much information concerning specific funds should be passed on to plan participants in 401(k) plans. In an era of full disclosure, advisers at the Center for Due Diligence Conference in Scottsdale, Ariz., said that they’re often confused about what type of information they should pass on to plan participants. The topic was discussed yesterday in an afternoon session titled: “The role of the retirement plan committee: Challenges and opportunities for advisers in today’s regulatory environment.” “Should we tell participants what funds are on watch and which ones aren’t? We don’t have the answers. I’ve not seen any guidance and it’s becoming more and more confusing,” said Gary Josephs, managing partner of Castner Josephs Retirement Group in Costa Mesa, Calif. As companies form committees to help decide investment options, several advisers said its difficult working with these committees because some of the members have little or no knowledge in 401(k) plans.

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