The
"It's clear that the rules are inadequate because they fail to require disclosure of fees and conflicts of interest to workers," said Rep. George Miller (D-Calif.), chairman of the
While the proposed changes aim to increase fee disclosure and the reporting of conflicts of interest, critics say the disclosures would be to plan fiduciaries and not to the employees who typically pay most of the overhead costs.
In July, Miller introduced legislation requiring fee disclosures directly to participants in the plan, but his proposal has not made it out of committee.
Congressional hearings and an investigation by the
Labor Department officials say the new rules could cost the industry $52 million the first year, with the expense gradually diminishing over time. The proposed rules will go through a comment period before they are revised or implemented.
"We are working quickly to implement regulations that foster fair, competitive and transparent prices for services as well as combat excessive or hidden plan fees," Labor Secretary Elaine Chao said in a statement.