CFO
Menu
  • Accounting & Tax
  • Banking & Capital Markets
  • Growth Companies
  • Human Capital & Careers
  • Risk & Compliance
  • Strategy
  • Technology
  • Sign InSign Up
CFO
  • Conferences
  • Webcasts
  • Research
  • White Papers
  • Jobs
  • Training
  • Newsletters
  • Magazine
CFO
The Ongoing Evolution of FP&A
Global Survey Identifies 7 Key Insights
Usage of Variance Analysis Is, Well, Variable
While it's not debatable that variance analysis is…
Does Diversity Pay Off?
CFOs Look to Quantify Inclusion Initiatives
  • Accounting & Tax
  • Banking & Capital Markets
  • Risk & Compliance
  • Human Capital & Careers
  • Growth Companies
  • Strategy
  • Technology
Human Capital & Careers

DoL Wants “Hidden” 401(k) Fees Revealed

A proposed rule would mandate strict new disclosure requirements for benefit-plan service providers about their compensation and conflicts of interest.

David McCann
December 12, 2007 | CFO.com | US
share
Tweet
Print

Email this article

In an effort to bring “hidden” or excessive 401(k) fees to light, the Department of Labor on Thursday proposed requiring retirement- benefit-plan service providers to make added disclosures to plan fiduciaries. The aim is to help the plan sponsors gauge the reasonableness of what they pay the service providers and identify conflicts of interest that could affect their performance.

If adopted, the proposal would benefit retirement plans by possibly lowering their fees, increasing the efficiency of plan-service provider relationships, and reducing the costs of evaluating service providers, the DOL asserted.

Recommended Stories:
  • Operation Match: Richer 401(k) Benefits
  • Suit Reversal Clarifies 401(k) “Participant”
  • Rules Finalized for Automatic 401(k)s

“We are working quickly to implement regulations that foster fair, competitive and transparent prices for services as well as combat excessive or hidden plan fees,” said Secretary of Labor Elaine Chao.

Under the proposal, in their contracts with 401(k) or other retirement benefit plans, service providers would have to provide specific, detailed information about all services to be performed and all compensation to be received either directly from the plan or from third parties. The proposal includes a definition of “compensation or fees” and a rule for estimating the prospective amount of compensation.

Service providers also would have to describe any participation or interest they might have in transactions to be entered into by the plan; any material relationships with third parties that could create conflicts of interest; any compensation they might get without the plan fiduciary’s approval; and any policies or procedures they have that address potential conflicts of interest.

Post navigation

← SEC: More Disclosure on Loan Exposure
CFOs on the Move: Week Ending December 14 →

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

Popular Articles

  1. 10 Habits of Highly Effective CFOs
  2. No Mystery How to Restrain Health Costs
  3. Zero-based Budgeting Is Surging
  4. Pay Ratio Disclosures Mislead Investors
  5. No More Tax Deductions for Bad Actions
Advertisement
 

Topics

  • Accounting & Tax
  • Banking & Capital Markets
  • Human Capital & Careers
  • Growth Companies
  • Risk & Compliance
  • Strategy
  • Technology

Media

  • Videos
  • Whitepapers
  • Research
  • Magazine

Events

  • Conferences
  • Argyle Events
  • Webcasts

Services

  • Reprints
  • Back Issues
  • Mobile
  • Widgets
  • RSS

About CFO

  • About CFO
  • Editorial Staff
  • Press
  • Advertise
  • Contact Us

Want the Magazine?

Relax and unplug with our award-winning coverage.

Subscribe Now
Follow Us