DOL Launches 401k Fee Disclosure Resource Website
WASHINGTON, DC, September 19, 2012 -- The U.S. Department of Labor's Employee Benefits Security Administration has announced a new 401k fee disclosure website as a resource for consumers. The new site, http://www.dol.gov/ebsa/publications/understandingretirementfees.html, offers information on disclosures that, for the first time, will help workers with 401k-type retirement plans see what they are paying to invest their savings. It also includes new tips and tools on making smart retirement investment decisions.
"Workers deserve to know how much they are paying for their retirement investments. These disclosures will help workers get the most for their money when it comes to their 401k-type retirement plans," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "Fees can eat away at retirement savings. Access to good information can lead to an increase of tens — even hundreds-of-thousands of dollars — in retirement savings over the course of a career."
As a result of a rule published by EBSA, workers investing in 401k-type plans began receiving fee disclosures from their employers this summer, marking the first time that employers have been required to provide this information. Research has shown that paying just 1 percent more in fees can lead to a 28 percent decrease in a 401k account balance over the course of a career.
The launch of the new site follows a webinar featuring Gene Sperling, director of the National Economic Council and assistant to the president for economic policy; Hilda L. Solis, secretary of labor; and Borzi that offered advice on how to utilize the new disclosures. A recording of the webinar is available at http://s.dol.gov/WM. A transcript will be available soon.
Workers in employer-sponsored health and retirement benefit plans who have questions about benefits laws can contact an EBSA benefits advisor at http://www.askebsa.dol.gov or by calling 866-444-EBSA (3272).
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