July 30, 2008 — The U.S. Department of Labor published a proposed rule to the Federal Register yesterday, which is designed to help 401(k) plan participants make more informed investment decisions.
“Our proposal is consistent with public consensus that workers need clear and concise information, not dozens of pages of legalese about the investment options available under their plans, and that they would benefit greatly from having that information in a comparative format,” Secretary of Labor Elaine Chao, said.
The proposal, in part, would require plan fiduciaries to disclose investment-related information, including fees and expenses, in a comparative chart or similar format.
When finalized, the proposed rule would take effect for plan years beginning on or after Jan. 1, 2009.
Source: Employee Benefit News, www.ebn.benefitnews.com