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Thursday, February 25, 2010

Fee Disclosure in Defined Contribution Retirement Plans: Background and Legislation

John J. Topoleski
Analyst in Income Security

As households become more reliant on 401(k) plans and other defined contribution pension plans for future retirement income, policymakers have become more concerned that participants could be unaware of the fees charged in their plans. Small differences in fees charged can have large impacts on account balances upon retirement. This report provides information on the kinds of fees that are charged in 401(k) and other defined contribution plans and details the provisions of bills introduced in the 111th Congress that address fee disclosure in retirement plans. In the 111th Congress, these bills are H.R. 2779, the Defined Contribution Plan Fee Transparency Act of 2009, introduced by Representative Neal on June 9, 2009; H.R. 2989, the 401(k) Fair Disclosure and Pension Security Act of 2009, introduced by Representative Miller on June 23, 2009; S. 401, the Defined Contribution Fee Disclosure Act of 2009, introduced by Senator Harkin on February 10, 2009; and H.R. 4146, the Sensible Transparency for Retirement Plans Act of 2009, introduced by Representative Kline on November 19, 2009. H.R. 2989 was reported out of committee on June 24, 2009. 

This report will be updated as legislative action warrants. 

Date of Report: January 29, 2010
Number of Pages: 20
Order Number: RL34678
Price: $29.95

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