Last week, Bradford P. Campbell, assistant secretary of labor for the U.S. Department of Labor’s Employee Benefits Security Administration (“EBSA”) testified before the Senate Committee on Health, Education, Labor and Pensions regarding several DOL initiatives to expand the disclosure of fees and expenses in 401(k) type plans. In his testimony, Mr. Campbell discussed:
- a July 23, 2008, proposed rule that is intended to make it easier for 401(k) plan participants to make informed investment decisions. Under the proposed rule, all participant-directed plan sponsors would be required to provide plan participants with plan fee and expense information in an easy to follow, comparative chart. We reported about this proposed rule in our July 28, 2008 Update and recommended that all plan fiduciaries review their 401(k) plan investments, fees and expenses on a regular basis.
- a December 13, 2007, proposed regulation that would require service providers to disclose in writing the services that they provide to the plan and all direct or indirect compensation that they receive for providing these services. Requiring service providers to disclose all services and fees will enable plan fiduciaries to determine whether the fees are reasonable and whether any conflicts of interest exist. We reported about this proposed rule in our December 17, 2007 Update and noted that it represented another regulatory initiative that is designed to ensure the full disclosure of all plan costs, commissions, and administrative fees.