House Education and Labor Committee Chairman George Miller (D-Calif.) submitted legislation Thursday that would require 401(k) administrators to disclose fees to investors each year, clearly and simply, along with any potential conflicts of interest.
“Hidden fees are eating into the retirement savings of millions of American workers without them knowing it,” Miller said. “Workers and employers need better information about fees in order to make well-informed decisions about basic things like which plans and investment options will give them the best deal.”
The bill would also require administrators to offer at least one low-cost, balanced index fund in the line-up and provide more detail on investment strategies, risks and returns.
In addition, 401(k) administrators would have to tell employers every year about any potential conflicts of interest. The bill would also enhance the Department of Labor’s oversight of 401(k) plans.