ICI Testifies in Support of Improvements to Retirement Plan Disclosure
DOL ERISA Advisory Panel Holds Hearing
Washington, September 21, 2004 - The Investment Company Institute today told the Department of Labor’s ERISA Advisory Council that American workers should have clearer disclosures in their self-directed retirement plans, which, for many workers, is their single largest financial asset.
Elizabeth Krentzman, General Counsel at ICI, testified before the Advisory Council, saying that “the Institute strongly supports clear, meaningful, and effective disclosure to plan sponsors and to plan participants.”
“Disclosure to plan sponsors should enable them to meet their stringent duties as ERISA fiduciaries while disclosure to defined contribution plan participants should provide them with descriptions of all plan investment alternatives to help them make informed investment decisions,” Krentzman said.
During her testimony, Krentzman noted that mutual funds are the investment vehicle of choice for defined contribution plans, holding nearly half of all defined contribution plan assets and nearly half of all 401(k) plan assets. Mutual fund firms and their affiliates also serve as plan recordkeepers and provide other services for many defined contribution plans.
The Institute devotes sections of this website to fee, disclosure, and retirement policy issues that affect funds and their shareholders.