Last month, with very little media attention, H.R. 3185, which would have required greater disclosure of 401(k) fees to plan participants, was defeated. Bill sponsor, Rep. George Miller, D-CA., announced that the bill would not be passed this year.
One of the main arguments from the 401(k) industry and the Department of Labor is that the bill would make disclosure of fees to plan participants more complex and expensive than it needs to be. So, in other words, they're saying it would cost more money to disclose the ridiculously high fees they are already charging (and legally hiding from) plan participants.
Well, the 401(k) industry may be right about this bill being more expensive, but only for them - not plan participants. We believe the bill would result in lower expenses overall for many plan participants. It would finally give participants easier access to the information they need to pressure employers to offer lower cost 401(k) options that don't unneccesarily erode their retirement savings.
We think H.R. 3185 is a very good step in the right direction. We hope the House will take it up again next year and that it will pass. 401(k) plan participants deserve to know exactly what their plans are costing them.
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