Employee Fiduciary Submits Comment Letter to U.S. Department of Labor Advocating for Greater 401(k) Fee Transparency

News provided by

Sep 05, 2023, 08:41 ET

MOBILE, Ala., Sept. 5, 2023 /PRNewswire/ -- Employee Fiduciary, LLC, a leading provider of 401(k) recordkeeping and Third-Party Administration (TPA) services, has formally submitted a comment letter to the U.S. Department of Labor (DOL) in response to the department's Request for Information (RFI) concerning the SECURE 2.0 Reporting and Disclosure requirements.

The letter was written by Employee Fiduciary's President and CEO, Eric Droblyen, CPC, QPA. It addresses several key areas of concern, with a primary focus on the need for enhanced clarity and transparency in how 401(k) fees are presented to participants.

"We firmly believe in 401(k) fee transparency and the imperative need for participants to clearly understand the implications of these fees. This letter is our commitment to championing a change that benefits participants nationwide," says Droblyen.

Key highlights from Employee Fiduciary's recommendations include:

Standardization of plan-related information: Introducing a model chart for administrative and individual expenses to help participants total and benchmark their fees.
Transparency of "hidden" fees: Requiring the breakout of indirect administration fees from fund operating expenses to provide a clearer understanding of true costs.
Highlighting the cumulative effect of fees: Shifting the focus from annual fees to a comprehensive view of how these fees, compounded over time, can impact participants' retirement savings.

The letter references a 2021 study by the GAO, which found that nearly 40% of 401(k) plan participants find difficulty in deciphering the fee information presented in today's disclosures. Employee Fiduciary's position is clear: the disclosure of these fees needs a transformative change, ensuring each participant possess the knowledge necessary to make informed retirement savings decisions.

To read a copy of the comment letter and gain further insight into Employee Fiduciary's perspective on 401(k) fee transparency, visit www.employeefiduciary.com/blog/dol-401k-fee-disclosure-feedback.

About Employee Fiduciary

Employee Fiduciary, LLC, founded in 2004 and headquartered in Mobile, AL, is a leading provider of low-cost 401(k) plans for small to medium-sized businesses. The company's founding principles are transparent fees, personal care, and expert plan design. The company serves over 5,000 small businesses and approximately 145,000 participants nationwide.

For more information about Employee Fiduciary, visit www.employeefiduciary.com, and follow us on Facebook, Twitter, and LinkedIn.

For Additional Information
Victoria Power
Employee Fiduciary
(251) 254-9634
[email protected]

SOURCE Employee Fiduciary