On July 23, 2008, the Employee Benefits Security Administration (EBSA) published a proposed rule making it easier for participants covered by 401(k)-type plans to make informed retirement savings decisions.

Currently, there are approximately 437,000 participant-directed individual account plans (e.g., 401(k) plans) that cover an estimated 65 million participants. Because participants and beneficiaries are increasingly responsible for making their own retirement savings decisions, there is a heightened concern that these individuals do not have the information necessary to make informed decisions. The proposed regulation contemplates the disclosure of certain plan and investment-related information, including fee and expense information, to these participants and beneficiaries. 

As part of the proposal, EBSA would require plan fiduciaries to make available basic information about the plan and its investment options on a regular basis, such as: (a) different options available under the plan; (b) how to give investment instructions; (c) information about investment returns and fees and expenses; and (d) how to obtain more detailed information. The agency has also developed a model chart to provide investment-related information in a user-friendly format, but the agency will also allow plan fiduciaries the flexibility to design their own charts or comparative formats.   

Written comments on the proposed regulation should be received by the Department of Labor on or before September 8, 2008. To submit comments electronically, email e-ORI@dol.gov (enter into subject line: Participant Fee Disclosure Project), or use the Federal eRulemaking portal at http://www.regulations.gov/. Interested parties may also send comments to the Office of Regulations and Interpretations, Employee Benefits Security Administration, Attn: Participant Fee Disclosure Project, Room N-5655, U.S. Department of Labor, 200 Constitution Avenue, NW., Washington, DC 20210.