The U.S. Department of Labor (DOL) has proposed a regulation that would make the details of retirement plan fees more clear for participants, according to a recent article in “USA Today”.
According to the
article, the regulation would have plan sponsor disclose more information, in clearer language, about retirement plan fees that affect participants and their investments. It would require plan sponsors to provide details such as:
- Investment expenses and past performance in some centralized form, such as a chart or some similar format
- Performance of funds compared against an industry benchmark
- How much each participant pays for plan administrative services such as accounting and recordkeeping
The public will have 45 days to comment on the proposed regulation, which the DOL is planning to finalize in late 2008. If all goes as planned, the new regulation could become effective as early as January 1, 2009.
NADART has some of the lowest fees in the retirement plan industry. For more information on this topic, you can order a copy of our “Understanding Fees” booklet through our
Product Information Request Form. Or you can contact one of our Marketing representatives at (800) 462-3278, ext. 7161 or by e-mail at
nadart401k@nada.org with your questions or if you would like to sponsor a plan through us.