Contact: (800) 899-6624

Home News Article Archive Legislative Update: House Panel Approves 401(k) Transparency Bill
Share |
PDF

Legislative Update: House Panel Approves 401(k) Transparency Bill

Written by: 401k Advisors, MMC's affiliated company


Legislative Update: House Panel Approves 401(k) Transparency Bill

The House Education and Labor Committee approved the 401(k) Fair Disclosure and Pension Security Act of 2009 (the “Act”), introduced by Representative George Miller, on June 24th. The bill merges a bill introduced by Representative Rob Andrews that was focused on individual investment advice with the Act’s targeted 401(k) fee disclosure for participants.

If the bill passes, plan sponsors will be required to provide information regarding each investment option such as their historical risk, returns and fees. Fees would have to be disclosed to participants on a quarterly basis. In addition, in order to be protected under ERISA section 404(c) the legislation would require a plan to provide at least one low-cost index fund within their investment menu. This requirement does not presently exist for 404(c) protection.

Also included in the bill are more stringent requirements for providing individual investment advice. More specifically, the bill intends to remove potential conflicts of interest. However, many within the industry as well as members of Congress and representatives of the Department of Labor oppose this component of the bill claiming that it may preclude individuals and organizations best suited to providing individual investment advice.

While we are confident that the bill will pass, we are less certain which of the provisions will be included in its final form. As always, we will keep you up to date regarding your responsibilities.
 

 

Go back to MMC August 09 HR E-Newsletter

 

MMC HR E-Newsletter Archive

MMC Human Resources Tips

 

 

401(k) Login

Testimonials

"Our experience with MMC, Inc. has been a very positive one from the start and we're grateful for all that you and your staff provide us...you should be proud of your entire staff's competence and professionalism."

- ECommerce Company


More