Contributor: Derrin Watson

Transparency is a major goal of two Department of Labor initiatives which will affect most retirement plans, particularly the roughly 500,000 participant-directed defined contribution plans, such as 401(k) plans, in America today. Both initiatives came to fruition this summer. The first initiative requires most service providers of retirement plans (whether or not participant-directed) to disclose their services and fees, including those paid by third-parties, such as other providers or investment houses. The requirement to disclose indirect compensation includes the requirement to reveal who is paying the compensation and why. Some providers must also disclose information relating to some or all of the plan’s investments.... read more