Compensation Rule
The U.S. Department of Labor announced a rule in July that would enhance disclosure of 401(k) fees to employers who sponsor the retirement plans by requiring plan providers to report direct and indirect compensation received in connection with account services. The requirement will take effect July 16, 2011, the Labor Department said.
The Labor Department is scheduled to announce rules related to fee disclosure for participants tomorrow, Gloria Della, a spokeswoman for the department, said in a telephone interview yesterday.
The number of workers enrolled in traditional pension plans, where employers generally provide retired employees with lifetime payments, fell to about 19 million in 2007 from 27 million in 1975, according to the Labor Department. In that same period, workers in defined contribution plans such as 401(k)s increased to 67 million from 11 million.
Putnam is releasing its website feature to 401(k) participants through the end of the year. About 30,000 investors will have access to it as of Oct. 22, said the firm's Murphy.