Additional 401(k) fee disclosure is all but certain to be required, House Education and Labor Committee Chairman George Miller said today, but it is unclear exactly how extensive any new disclosure legislation or regulations would be.
“Inaction is probably not an option for this committee,” Mr. Miller, D-Calif., said at today’s committee meeting on fee disclosure.
Enhanced disclosure requirements were endorsed by the committee’s ranking Republican, Howard McKeon, R-Calif. — as long as he is convinced that those won’t add to the confusion of plan participants. “We must resist the urge to overwhelm workers,” Mr. McKeon said.
One hearing witness, Matthew D. Hutcheson, an independent fiduciary based in Portland, Ore., testified that conventional 401(k) plans pay management costs of 3% to 5% of assets annually — more than he said was reasonably necessary.
Robert G. Chambers, chairman of the American Benefits Council, Washington, said the council supported some additional disclosure but was concerned that overly onerous new regulations could add to the costs of 401(k) plans and discourage their use.
