Fee Disclosures

In the past year or so, Congress and government regulators have increasingly taken an interest in assessing fee disclosure issues, such as what fee information is required and how the information is disbursed. A primary concern amongst lawmakers is that plan participants have enough information about the fees and expenses they are being charged, so that they are able to make the best investment choices for themselves. ICMA-RC understands the importance of low fund fees and expenses to our plan participants. Please visit the links below for current news and articles on this important issue.

Related News and Articles

Retirement Plan Fee Disclosure Reviewed

The Ways and Means Committee held its first hearing on fee disclosure on Tuesday, Oct. 30, 2007. Although there have been other hearings to date on fee disclosure, this is the first hearing in the committee that has jurisdiction over governmental 457 plans and the most extensive with a total of 15 witnesses.

The fee disclosure debate is still in the early stages and beyond Committee Chairman Charles Rangel (D-NY) expressing an interest in working on the issue in a bipartisan manner, he didn't make a statement about likely next steps. Most observers believe that the Ways and Means Committee will wait until Chairman Miller, Education & Labor Committee, takes action on his bill before proceeding. [Read More]

Second Bill on Mutual Fund Fee Disclosure Introduced in House of Representatives

A second bill, The Mutual Fund Fee Reform Act, aimed at mutual fund fee disclosure rules has been introduced in the U.S. House of Representatives. The bill, sponsored by Rep. Dennis Moore (D-KS) and Rep. Mike Castle (R-DE), would direct the U.S. Securities and Exchange Commission (SEC) to revise regulations to require more detailed 12b-1 fee disclosure to fund investors. [Read More]

Neal Bill Would Require Expanded Disclosure to Retirement Plan Participants

Rep. Richard Neal (D-MA) has introduced a bill that would require employers to provide employees with two separate disclosures regarding plan investments and fees – at enrollment and annually. Rep. John Larson (D-CT) co-sponsored the bill. [Read More]

Legislation Would Require More 401(k) Fee Disclosure

House Education and Labor Committee Chair George Miller, D-CA, has introduced legislation that would require retirement plan providers to annually disclose to 401(k) plan participants and plan sponsors all fees charged to their accounts as well as any potential conflicts of interest. [Read More]

House Hearings on 401(k) Fees Reveal Little Initial Congressional Interest Beyond Greater Disclosure

The first of a planned series of House Education and Labor Committee hearings March 6 focused on greater fee disclosure, but showed little initial Congressional interest in legislative reforms beyond that. [Read More]

GAO Study Advocates Greater 401(k) Plan Fee Disclosure

The Government Accountability Office (GAO) is taking aim at fees charged to participants in 401(k) plans, calling for more disclosure and new regulations that would require service providers such as brokers to tell plan sponsors about any compensation they receive to recommend specific investments.

The request was contained in a report GAO released in November that examined how 401(k) plan fees are determined and who pays them. It cited studies that show 80 percent of plan participants are not aware how much they pay in fees. [Read More]

Downward Trend in Fund Fees and Expenses

High fees and expenses of mutual funds have long been considered as a detractor from investment returns and a major reason that mutual funds cannot beat the market. A study by the Investment Company Institute shows a downward trend in fund fees and expenses. [Read More]

Focus on fees will likely lead to new laws and regs in 2007

A new focus on what plan sponsors charge in fees, and how they are disclosed to investors, will likely lead to what could be significant legislative and regulatory change before the end of 2007.

The pressure for change has come on several fronts, including several prominent lawsuits seeking disclosure of sponsor fees; U.S. Securities and Exchange Commission and Dept. of Labor efforts to boost disclosure requirements; and from a Congressional hearing, with another likely in June, into fees and fee disclosure.[Read More]