Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Government Report Shows Employers Are in the Dark About 401k Fees Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, May 25, 2012

Government Report Shows Employers Are in the Dark About 401k Fees

News summary by MFWire's editors

A new report from the Government Accountability Office shows that 401(k) plan sponsors and their employees pay more for their plans than they think. Representative George Miller (D-California), who released the report, said he's "hopeful" that the Obama Administration will take steps to mandate greater disclosure.

Our sister publication 401kWire reported yesterday on the GAO's findings.

The GAO report found that nearly six in ten sponsors either don't know if their plans charge investment-management fees or believe that these fees are waived, half don't know if their plan charges transaction fees, and 48 percent do not know if their plan has a revenue-sharing agreement with recordkeepers or other service providers. (The average plan paid 1.13 percent for recordkeeping.) The GAO surveyed 1,000 401(k) sponsors and found that 66 percent have not negotiated fees in the last five years.

The GAO's survey also found that small plans (50 or fewer employees) pay nearly 90 percent more on average than plans with 500-plus participants.

Rep. Miller, who has crusaded for years to make 401(k) fees more transparent and introduced legislation to that effect, said that "for too long, confusing business arrangements and hidden fees have skimmed money from workers' hard-earned savings," and that plan participants "do not have a fighting chance if employers don't understand how their own plan works."

Read the full report.  

Edited by: Chris Cumming



Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use