Fee Rules Released
The Labor Department issued a separate final rule today requiring detailed disclosure of 401(k) fees so companies and their employees can see what they're being charged. The regulation will take effect for providers of 401(k) plans by July 1, according to the statement. Workers are due to receive additional disclosures later in the year, the Labor Department said.
The disclosures may spur small employers and their workers, who generally pay higher fees for their plans than larger companies, to shop for better deals, and put pressure on providers such as mutual-fund firms and insurers to cut costs.
The rules generally will require employers to show employees the fees on each investment option per $1,000 invested, such as $10 for a fund with an expense ratio of 1 percent, so they can make comparisons and more informed choices, according to the Labor Department. Workers also will receive statements showing administrative costs charged to their individual accounts.