Who doesn’t want the biggest retirement nest egg possible? I know I certainly do.
With the U.S. Department of Labor participant-level fee disclosure regulation deadline finalized, participants who invest in employer-sponsored retirement plans (such as 401(k) plans) will be better equipped to make decisions related to fees – decisions that could affect the size of their retirement nest eggs.
How the Regulations Equip Participants to Hatch the Biggest Retirement Nest Egg
Phyllis Borzi, the Assistant Secretary of Labor for the Employee Benefits Security Administration, testified before the U.S. Senate’s Special Committee of Aging on March 7, 2012. In her testimony, Ms. Borzi noted that the DOL’s ongoing initiatives (such as the service provider fee disclosure regulations and the participant-level fee disclosure regulations) are “designed to improve the transparency and adequacy of retirement savings plans, in particular focusing on 401(k) plans where a number of investment and other risks have been shifted onto the shoulders of workers,” with the DOL’s goal being “to make sure that employers and workers have good retirement savings options and the information to make the best choices about retirement savings.”
Effective Date/Compliance Deadline
For “calendar year” plans (plans with a plan year beginning each January 1st and ending each December 31st), the initial required annual participant-level fee disclosures must be furnished no later than August 30, 2012, and the first quarterly statement with disclosures must be furnished no later than November 14, 2012. Yes, more than one disclosure is involved. See the Detailed Information section, below.