The US Department of Labor recently announced stricter rules for employers to follow in informing workers of various options. These regulations will become final on January 1, 2009. The proposed regulations were published in the Federal Register on July 23, 2008.
The new regulations are mainly about reporting of fees, expenses and investment options for 401k and other savings-based retirement plans. The plans currently cover more than 65 million employees.
Employers can comment on the new regulations regarding 401k and other retirement savings plans. They can send their comments by email to the US Department of Labor, Employee Benefits Security Administration, Room N-5655, 200 Constitution Avenue NW, Washington D.C. 20210, Attention: Participant Fee Disclosure Project.
“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,” said US Secretary of Labor Elaine L. Chao. “One of the department’s top priorities is improved disclosure to workers that will give them the information they need to make informed investment decisions.”