Key lawmaker: Kill 401(k) indie-adviser proposal

Legislation moving through Congress that would sharply limit what kinds of advisers can counsel 401(k) participants should not be passed, Rep. Earl Pomeroy, D-N.D., said today. Mr. Pomeroy, a member of the House Ways and Means Committee, said investment advice provisions proposed in recent legislation would “have the impact of reducing independent advice that's presently available.” Specifically Mr. Pomeroy is referring to the 401(k) Fair Disclosure and Pension Security Act of 2009 (HR 2989), which was approved in July by the House Education and Labor Committee. The bill would allow only independent advisers to work with 401(k) plans. “Millions of people will lose access to investment advice if the Education-Labor bill passes,” said Mr. Pomeroy, who has been active in advocating for retirement reforms over the last year. Legislation requiring more disclosure of 401(k) fees, however, could be enacted this year, Mr. Pomeroy said. The Education and Labor bill, sponsored by Education and Labor Committee Chairman George Miller, D-Calif., would require more 401(k) fee disclosures in addition to tightening standards for investment advice given to 401(k) participants. Both the Education and Labor and the Ways and Means committees are working on 401(k) fee legislation.