This would certainly seem to be the case based upon this excellent and disturbing post by Kathy Kristof-Senate Moves to Keep 401(k) Fees Hidden.
This issue needs be kept on the front burner. I fear that the Senate Finance Committee is hesitating to act on this issue out of fear that contributions from 401(k) providers will dry up. In my opinion this is the height of lawmakers putting interests of the public last.
I encourage you to email the members of the Senate Finance Committee and ask them what they could possibly still need to “vet.” Ask them to reconsider their decision and to pass a measure that mandates uniform, total, and full disclosure of ALL fees and expenses for all 401(k) plans. No loopholes, no exceptions.
In an earlier post I discussed the type of Hellish Retirement Plans that need to have full and total fee disclosure imposed upon them. In another post I discussed what a well-run plan might look like.
Plan sponsors need to understand all fees and expenses associated with the retirement plans they offer to their employees. It is their fiduciary obligation.
If you are a plan sponsor and have questions in this area please feel free to contact me for assistance.
Sponsors and participants can also check out BrightScope, a service that rates 401(k) plans.
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