Legislation Would Require More 401(k) Fee Disclosure

August 3, 2007

House Education and Labor Committee Chair George Miller, D-CA, has introduced legislation that would require retirement plan providers to annually disclose to 401(k) plan participants and plan sponsors all fees charged to their accounts as well as any potential conflicts of interest.

The Miller bill, introduced in late July, would only apply to ERISA plans. The future of this legislation is still uncertain, but Miller is planning additional hearings this year.

According to the bill summary, the 401(k) Fair Disclosure for Retirement Security Act of 2007 would require additional fee disclosures and reporting by plan sponsors and providers, as well as enhanced oversight of 401(k) plan fees by the Department of Labor.

ICMA-RC will monitor any developments and provide regular updates.