ICI says 401(k) legislation would set a ‘dangerous precedent’

The Investment Company Institute blistered a House bill under consideration that would require detailed 401(k) plan fee disclosures and require plan administrators to offer a least one low-cost index fund to plan participants.
JUN 25, 2009
The Investment Company Institute blistered a House bill under consideration that would require detailed 401(k) plan fee disclosures and require plan administrators to offer a least one low-cost index fund to plan participants. “The bill fails to define clearly the vital disclosures investors need, while layering on unnecessary and potentially inaccurate information that will only confuse employers and workers,” Paul Schott Stevens, ICI’s president and chief executive, said in a statement. “The proposed legislation sets a dangerous precedent by giving Congress the job of selecting investment options for plans.” The ICI sent a letter detailing its concerns to members of the House Education and Labor Committee, which voted 29 to 17 yesterday to pass the 401(k) Fair Disclosure and Pension Security Act of 2009. The ICI stressed, however, that it supports efforts to improve the 401(k) system, the statement said. However, a market participant did not agree. “The bill is moving in the right direction for consistency and more uniformity [of disclosure],”said Pam Hess, director of retirement research at Hewitt Associates LLC, a global human-resource-consulting firm based in Lincolnshire, Ill. “It will lower costs for participants. The more knowledge that plan sponsors have helps them make better decisions as they shop around. The result will be better plans for participants.”

Latest News

RIA dealmaking accelerates as three firms hit AUM milestones
RIA dealmaking accelerates as three firms hit AUM milestones

Wealth Consulting Group, Coastline and Maridea report fresh capital, acquisitions and asset growth as advisor M&A keeps climbing

VastAdvisor closes $1 million SAFE round from advisor-side backers
VastAdvisor closes $1 million SAFE round from advisor-side backers

Carson Group's Dani Fava, Jason Pereira of Woodgate Financial, and Sally George of Convergency Partners led the raise as the growth-tech startup builds out its AI platform and leadership bench.

Wells Fargo adds three advisor practices as recruiting rebound continues
Wells Fargo adds three advisor practices as recruiting rebound continues

New teams from William Blair, Ameriprise and UBS bring more than $560 million in combined client assets to the firm's employee and independent channels.

UBS will pay advisors 'handsomely' for banking starting next year
UBS will pay advisors 'handsomely' for banking starting next year

Regulators this year approved UBS Bank USA’s conversion to a nationally chartered bank.

SEC accuses Tricolor executives of hiding $800 million collateral hole
SEC accuses Tricolor executives of hiding $800 million collateral hole

How a subprime lender’s car-loan bonds allegedly unraveled before bankruptcy.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income