Bush Administration officials, pension plans and financial service firms joined the Investment Company Institute this week in testifying before Congress on how breaking out the various fees in 401(k) plans separately not only would be costly but would confuse investors.

“We recommend that a service provider that offers a number of services in a package be required to identify each of the services and the total cost, but not to break out separately the fee for each of the components of the package,” ICI President Paul Schott Stevens told the U.S. House Ways and Means Committee.

Department of the Treasury Benefits Tax Counsel Thomas Reeder testified, “Overly detailed, lengthy disclosures on plan fees and costs may impair, rather than enhance, participants’ ability to make informed decisions.”

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.