The U.S. Department of Labor (DOL) and an industry organization have expressed concern about a revised version of The 401(k) Fair Disclosure for Retirement Security Act (H.R. 3185), which was recently marked up by the House Education and Labor Committee.
"Unfortunately for America's workers, retirees, and their families, the Committee-passed bill would make 401(k) fee disclosure more complex and expensive than it needs to be," said Bradford P. Campbell, assistant secretary for DOL's Employee Benefits Security Administration. DOL is working on its own fee disclosure regulations.
Larry Goldbrum, general counsel of The SPARK Institute, said the new version of H.R. 3185 is significantly different from the original version. "Our members are very concerned about this revised bill," he said. "In fact, some of them view it as worse than the original bill."
Among other things, the organization strongly opposes "all provisions that require disclosure to be made through a 'one-size-fits-all' form, in pre-determined categories, as a percentage of assets regardless of the fee structure, or that obligates a bundled provider to aggregate and present information from third parties in a single document," Goldbrum said.