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401k Fee Disclosure Bill Introduced
Washington, DC, August 25, 1999 - Senator Tim Johnson (D-SD) recently introduced S. 1541, the "401(k) Full Disclosure Act." The bill would amend ERISA to require 401(k) administrators to provide the following disclosure items on an annual basis:
- the individual’s account balance as of the beginning and ending of the statement period;
- the investment performance of each investment option for the statement period;
- total assets of the plan;
- the administrative fees of the plan for the statement period as a percentage of the total assets of the plan; and
- the name of the plan administrator.
In his remarks accompanying introduction of the bill, Senator Johnson referenced the importance of the uniform 401(k) plan fee disclosure form created by the Investment Company Institute (ICI), American Bankers Association (ABA) and the American Council of Life Insurance (ACLI) at the request of the U.S. Department of Labor. Senator Johnson noted his concern regarding the current lack of disclosure of 401(k) fees, his support of the uniform disclosure form, and his willingness to take a "wait and see" approach regarding mandatory fee disclosure for 401(k) plans until the disclosure form has been given fair opportunity for implementation.