WASHINGTON – The Labor Department wants financial services companies that administer 401(k) retirement plans to do a better job explaining just what fees and expenses are attached to those plans.
The rule would update one from 2012. Officials say many disclosure forms offered since then have become too lengthy, complex and confusing.
The department says employers who offer such plans need a better “road map” of embedded charges and fees.
Labour Department official Phyllis Borzi says the goal is to do something that’s helpful to plan sponsors, to those who run the plans and the participants, and not yet be overly burdensome.
There is a public comment period of 90 days. Then, the department will hold focus groups on the proposed new rule with those from financial firms offering such plans.