U.S. Pension Reform

Transparency and Fee Disclosure 

Government Resources

House Bills

•  401(k) Fair Disclosure and Pension Security Act (HR 2989 -- 111th Congress) 
  This bill consolidates Miller’s earlier fee disclosure bill (HR 1984) and the Conflicted Investment Advice Prohibition Act of 2009 (HR 1988).
  • Summary, House Committee on Education & Labor, 6/24/09
  • Cost Estimate, Congressional Budget Office (CBO), 7/31/09
• 401(k) Fair Disclosure for Retirement Security Act (HR 1984 -- 111th Congress)
  • Testimonies, Hearing of the Health, Employment, Labor, and Pensions Subcommittee of the House Committee on Education & Labor, 4/22/09
• HR 567 (112th Congress)
• HR 677

Senate Bills 

• S 347 (112th Congress)

Agency Initiatives and Resources

• Employee Benefits Security Administration (EBSA) Issues Frequently Asked Questions on Retirement Plan Fee Disclosure Rules (New) 
  •  News Release, 5/7/12
  •  Field Assistance Bulletin 2012-02, 5/7/12 
• Reasonable Contract or Arrangement Under Section 408(b)(2) - Fee Disclosure [PDF], final rule, Employee Benefits Security Administration (EBSA), 2/3/12    
  • Fact Sheet, 2/2/12 
  • News Release, 2/2/12
  • Summary of Major Changes, 2/2/12
• FINRA Provides Guidance on Application of Communications Rules to Disclosures Required by Department of Labor [PDF], advertising regulation, Financial Industry Regulatory Authority (FINRA), January 2012  
• Employee Benefits Security Administration (EBSA), No-Action Request Letter to the Securities Exchange Commission (SEC)  [PDF], 10/26/11
  SEC No-Action Letter [PDF], 10/26/11
  EBSA Press release, 10/27/11
• Target Date Disclosure [PDF], proposed regulations, EBSA, 11/30/10 
  • Fact sheet, 11/29/10
• Fiduciary Requirements for Disclosure in Participant-Directed Individual Account Plans [PDF], final rule, EBSA, 10/14/10
  • Press release, 10/14/10
  • Fact sheet, 10/14/10 (updated Feb 2012)
  • Model Chart, 10/14/10
  • Requirements for Fee Disclosure to Plan Fiduciaries and Participants—Applicability Dates [PDF], EBSA, 6/1/11
  • Requirements for Fee Disclosure to Plan Fiduciaries and Participants – Applicability Dates [PDF], EBSA, 7/13/11
    • News release, EBSA, 7/13/11 (initial disclosures to be furnished no later than the later of 60 days after the first day of the first plan year beginning on or after November 1, 2011, or 60 days after the effective date of the fiduciary-level fee disclosure rule, April 1, 2012) Technical Release 2011-03R: Interim Policy on Electronic Disclosure Under 29 CFR 2550.404a-5, EBSA, 12/8/11 
• Reasonable Contract or Arrangement Under Section 408(b)(2) – Fee Disclosure [PDF], interim final rule with request for comments, EBSA, 7/15/10  
  • Fact sheet [PDF] 7/15/10 
  • Class exemption model notice (Word version) [PDF version]
  • Public comments 
  • Applicability date delayed until January 1, 2012, EBSA press release, 2/11/11 
  • Requirements for Fee Disclosure to Plan Fiduciaries and Participants—Applicability Dates [PDF], EBSA, 6/1/11
  • Requirements for Fee Disclosure to Plan Fiduciaries and Participants – Applicability Dates [PDF], EBSA, 7/13/11
    • News release, EBSA, 7/13/11 (applicability date delayed until April 1, 2012) 
• Securities and Exchange Commission (SEC) mutual fund distribution fee initiative
  • SEC Proposes Measures to Improve Regulation of Fund Distribution Fees and Provide Better Disclosure for Investors, press release and fact sheet, 7/21/10
  • Mutual Fund Distribution Fees; Confirmations [PDF], proposed rules, 7/21/10
• Securities and Exchange Commission (SEC) target-date fund transparency initiative
  • SEC Proposes New Measures to Help Investors in Target Date Funds, press release,  6/16/10
  • Investment Company Advertising: Target Date Retirement Fund Names and Marketing [PDF], proposed rules, 6/16/10
  • Investor Bulletin: Target Date Retirement Funds [PDF], SEC and Employee Benefits Security Administration (EBSA), May 2010
• Defined Contribution Plans: Key Information on Target Date Funds as Default Investments Should Be Provided to Plan Sponsors and Participants, Government Accountability Office (GAO), January 2011 
• Private Pensions: Additional Changes Could Improve Employee Benefit Plan Financial Reporting [PDF], GAO, November 2009
• Retirement Savings: Better Information and Sponsor Guidance Could Improve Oversight and Reduce Fees for Participants [PDF], GAO, September 2009

Analysis  

• DOL Releases FAQs on Retirement Plan Fee Disclosures [PDF], Sutherland, 5/10/12 (New) 
• Department of Labor Releases Guidance on New Disclosure Rules, Morgan Lewis, 5/10/12 (New) 
• The Final 408(b)(2) Regulation: Impact on Investment Managers [PDF], Drinker Biddle, 5/8/12 (New) 
• Provider Fee Disclosure FAQs, Faegre Baker Daniels, 5/4/12 (New)
• Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants [PDF], SPARK Institute and Investent Company Institute (ICI), 4/26/12
• All-in Fee Report: A sample of what sponsors may see [PDF], Vanguard. 4/23/12 
• Deadlines for Participant Fee Disclosures are Approaching [PDF], Kelly, Hannaford & Battles, 4/13/12
• The Final Fee Disclosure Regulations Have Arrived [PDF], Pratas, Smith & Moore, LLC, April 2012  
• US DOL fee disclosure regulation – what “plan asset funds” and investment managers must know, DLA Piper, 4/10/12  
• DOL issues final service provider fee disclosure rules [PDF], Prudential, 4/9/12
• New Participant Fee Disclosure Regulations: Major New Burden is Right Around the Corner [PDF], Hinkle Law Firm, 4/3/12  
• Participant Fee Disclosures in 401(k)/403(b) Plans [PDF], TRI-AD, 3/23/12
• A Comparison of Disclosure Requirements – Section 408(b)(2) and Form 5500 Schedule C [PDF], Lindquist LLP, 3/19/12
• Brave New World: Understanding Defined Contribution Plan Fees [PDF], Conrad Siegel, 2/29/12
• DOL Issues Final Fee Disclosure Rule, Littler, 2/28/12  
• SPECIAL ALERT: Final Rule on 408(b)(2) has Finally Arrived, Trucker Huss, February 2012 
• DOL Releases Final Service Provider Fee Disclosure Regulations [PDF], Buck Consultants, 2/23/12
• Department of Labor Issues Final Regulations Requiring Fee Disclosures by Pension Plan Service Providers and Fiduciaries Managing Plan Asset Vehicles, Proskauer, 2/21/12
• Final Fee Disclosure Rules for Service Providers to Pension Plans [PDF], Sullivan & Cromwell, 2/17/12  
• Final Rules Issued on Retirement Plan Fee Disclosures—Compliance Required by July 1 [PDF], Pillsbury, 2/16/12  
• Key Takeaways from Plan Service Provider Fee Disclosure Final Regulations [PDF], Quarles & Brady, February 2012
• DOL Finalizes ERISA Disclosure Requirements for Retirement Plan Service Providers [PDF], Sutherland, 2/13/12 
• Final DOL 408(b)(2) Disclosure Regulation [PDF], Morgan Lewis, 2/8/12
• DOL Issues Final ERISA 408(b)(2) Regulations and Delays Effective Date [PDF], Dechert, 2/8/12  
• Finally the Final…408(b)(2) Regulation [PDF], Drinker Biddle, 2/3/12
• Final ERISA Fee Disclosure Rules [PDF], Ropes & Gray, 2/3/12 
• DOL Releases Final 408(b)(2) Disclosure Regulation [PDF], Morgan Lewis, 2/2/12  
• New Fee Disclosure Solution Released by NEA, NTSAA & ASPPA Joint 403(b) Taskforce, ASPPA, 2/1/12 (403(b) Model Disclosure Form - PDF)
• Assessing reasonableness of 403(b) retirement plan fees: Best practices for defining Who, What, How and Why [PDF], TIAA-CREF, January 2012
• Labor Department Offers Guidance on Electronic Disclosure, McGuire Woods, 1/23/12 
• Fee Disclosure: A detailed overview for plan sponsors and their advisors [PDF], Sentinel Benefits & Financial Group, January 2012  
• SEC Staff Grants No-Action Relief on Compliance with ERISA Disclosure Rule, Morgan Lewis, 11/11/11
• DOL Issues New Electronic Delivery Policy for Participant Fee Disclosures [PDF], Kelly, Hannaford & Battles P.A., 10/27/11
• DOL Issues Interim Guidance on Electronic Disclosure of Retirement Plan Fees [PDF], Milliman, 10/11/11
• DOL Issues Interim Guidance for Electronic Distribution of 401(k) Fee Disclosures, Seyfarth, 10/3/11
• Plan Sponsor and Participant Fee Disclosure Compliance At-A-Glance [PDF], The Standard, October 2011
• Plan Sponsor Fee Disclosure [PDF], The Standard, September 2011
• How Fee Disclosures Will Affect Retirement Plan Participants [PDF], The Standard, September 2011
• Determining reasonableness of retirement plan fees [PDF], Vanguard, 9/22/11 
• It’s Electric – DOL Issues Guidance on Electronic Disclosure Under Participant Fee Disclosure Regulations [PDF], Ogletree Deakins, 9/15/11
• Department of Labor Further Delays Fee Disclosure Regulations [PDF], Lindquist, 9/15/11
• DOL Adopts Interim Policy on the Use of Email for Participant Fee Disclosures [PDF], Ropes & Gray, 9/14/11  
• DOL Further Delays Service Provider and Participant Fee Disclosure Deadlines, McDermott Will & Emery, 8/12/11
• “My 401(k) is Free isn’t it?” – Understanding 401(k) Fees and Your Responsibilities as an Employer, SBA Community, 8/9/11
• DOL Delays Effective Date of Fee Disclosure Rules, McGuire Woods, 8/1/11
• Advisory—Deadlines Extended Again for Pension Plan Fee Disclosures, Pillsbury, 7/26/11
• New Retirement Plan Disclosures – Are You Ready? [PDF], Thompson Hine, 7/22/11
• Final Regulation on Participant-Level Fee Disclosures [PDF], MetLife, 7/20/11
• Fee Disclosure Compliance Delayed [PDF], Drinker Biddle, 7/19/11
• Extension of Applicability Dates for New ERISA Disclosure Rules [PDF], Morgan Lewis, 7/18/11  
• DOL Clarifies Effective Dates for Fee Disclosure Rules, McGuire Woods, 6/6/11
• The DOL’s 408(b)(2) Regulation: Impact on Investment Managers [PDF], Drinker Biddle, 6/6/11
• DOL Proposes Extension of Applicability Dates for Retirement Plan Fee Disclosure Rules, Smith, Gambrell & Russell, 6/3/11
• Fee Disclosure: A Three-Ring Circus for Plan Fiduciaries and Service Providers!, Spencer Fane Britt & Browne LLP, 5/13/11
• Department of Labor Proposes Additional Disclosure Rules for QDIAs and TDFs [PDF], McDermott Will & Emergy, 5/5/11
• DOL Delays Application of Service Provider Fee Disclosure Rules Until January 1, 2011 [PDF], Lowenstein Sandler PC, 4/6/11
• Emerging Issues under Interim Final Regulation on Plan Service Provider Fee Disclosure [PDF], Mayer Brown, 2/11/11
• Final Participant Fee Disclosure Regulations [PDF], Haynes Boone, 2/8/11
• (k) Plans: Frame of Reference, PLANSPONSOR, February 2011
• The Impact of 408(b)(2) on Service Providers [PDF], Reish & Reicher, 2/3/11
• DOL’s Final Regulations on Fee Disclosure to DC Plan Participants, Sibson Consulting, 2/1/11
• Plan Administrators Should Prepare Now to Comply with New Participant Disclosure Requirements, McGuire Woods, 1/12/11
• DOL Issues Final and Proposed Regulations on Disclosure Requirements for Participant-Directed Individual Account Plans, Towers Watson, January 2011     

News Stories

• EBSA's FAQs offer fee-disclosure compliance guidance, Pensions & Investments, 5/7/12 (New) 
• 401(k): the hidden costs; New, easy-to-read statements disclosing plan fees could be eye-opening for many workers, Pittsburgh Post-Gazette, 4/26/12
• Wells Fargo: Slight effects foreseen from fee disclosure rules, Pensions & Investments, 4/19/12  
• Inspect the Fees in Your 401(k), Wall Street Journal, 4/6/12 
• Don't Let Your Employees Be Surprised by New 401(k) Fees, Business Finance, 4/3/12
• Rules on 401(k) plans are changing, San Antonio Express-News, 3/26/12
• No such thing as a free 401(k), Pioneer Press, 3/18/12 
• Road to Retirement, Disclosure: 401(k) statements now explain fees, Patriot-News, 3/13/12  
• Why your employees may balk at their 401(k) fees, Washington Post, 3/13/12 
• Unbundling 401(k) Fees: Additional fee disclosures could send plan sponsors shopping, Treasury & Risk, 3/1/12  
• DC industry relieved over fee disclosure rules, Pensions & Investments, 2/27/12
• U.S. Requires 401(k) Plan Clarity on Fees, Reuters, 2/2/12  
• Treasury Aims to Ease Rules on Annuities in Retirement Plans, Los Angeles Times, 2/2/12  
• Unraveling the mystery of 401(k) disclosures, MarketWatch, 2/2/12  
• Direct, indirect fee information required under final DC disclosure rules, Pensions & Investments, 2/2/12
• New tool to clearly disclose 403(b) fees, USA Today, 2/1/12  
• How to Take Advantage of New 401(k) Fee Disclosures, U.S. News and World Report, 1/30/12
• It pays to understand your 401(k) plan fees, Chicago Tribune, 1/27/12
• New Fee Disclosure Rules Help Make Costs More Transparent, U.S. News and World Report, 1/23/12
• 401(k)s: Average Small Plan Expenses Exceed Large Plans’ Costs, AdvisorOne, 1/17/12
• Best Practices for 403(b)s Subject to Fee Disclosure Rules, PLANSPONSOR, 1/17/12
• New 401(k) Fee Disclosure Rules Are On Their Way, Investor's Business Daily, 1/13/12
• Callan survey: DC executives get low marks for fee knowledge, Pensions & Investments, 1/10/12      

Survey Results

• Trends in the Expenses and Fees of Mutual Funds, 2011 [PDF], Investment Company Institute, April 2012  
• The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2010 [PDF], Investment Company Institute (ICI), June 2011
• 401(k) Participants' Awareness and Understanding of Fees [PDF], AARP, February 2011
• 401(k) Participants not as Knowledgeable as Employers Think, PLANADVISER, 7/9/10  
• Defined Contribution/401(k) Fee Study: Inside the Structure of Defined Contribution/401(k) Plan Fees: A Study Assessing the Mechanics of What Drives the “All-In” Fee [PDF], Deloitte for the ICI, June 2009