Understanding Your 401(k) Risks
New Department of Labor rules issued under Section 408(b)(2) of ERISA will require providers and Plan Sponsors of defined contribution and defined pension plans subject to the act to clearly disclose services provided, explain fees, reveal conflicts of interest and indicate who is acting as a plan fiduciary.
By April 2012, 401(k) Plan Sponsors/Fiduciaries will have to comply with the new legislation:
- Provide complete and transparent disclosure of all plan fees and expenses on quarterly statements including revenue sharing payments
- Provide participants with information about the investments available under their plan including their costs
- Present information in a format that allows comparison shopping among the plan’s investment options
Plan Sponsors (employers) will be held accountable for:
- Excessive Fees
- Investment Selections
- Increasingly Intricate Compliance Regulation
...workers will have at their fingertips important and accessible investment-related information to comparison shop
As a 401(k) Plan Sponsor, complying with the new Department of Labor (DoL) regulations is not difficult but it may require urgent attention. You have a fiduciary duty with responsibilities enforced by the DoL. Find out more... FREE Legal 401(k) Risk AnalysisOur free legal risk analysis reviews your exposure to fiduciary liability and informs you of the corrective action required. This analysis is good practice and demonstrates proper fiduciary oversight. | Annual Fees have direct impact on Investment Returns. The more the Plan pays, the less employees save for their retirement. You have a fiduciary duty to ensure fees are reasonable and not excessive. Find out more... FREE 401(k) Cost ComparisonOur FREE 401(k) Cost Comparison lists all your current Plan fees and compares them with two alternatives. This comparison can be used to demonstrate proper fiduciary oversight. |
