What are your thoughts on these proposed 401k changes?
The proposed 401(k) Fair Disclosure and Pension Security Act, would:
Require 401k plans to disclose fees on workers? quarterly statements as a dollar figure taken from participants? accounts.
Require service providers and plan administrators to disclose administrative, investment management and transaction, along with other fees.
Help workers understand their investment options by providing information on risk, return and investment objectives.
Require plan administrators to offer at least one low-cost index fund in order to receive protection against liability for participants? investment losses.
Require service providers to disclose financial relationships so companies that sponsor 401k plans can make sure there are no conflicts of interest.
Ensure that investment advice is based on workers? needs, not the financial interest of those providing advice.
Provide adjustments to pension funding rules to ensure plans can weather economic crises without providers being forced to cut jobs or freeze plans.