As you may recall, I talked last week about the fact that Congress was working on legislation that would require improved 401(k) transparency. In short, workers would have to be provided with basic disclosures regarding options, risk, return, fees, etc.
Assuming that this legislation made it through the Senate unscathed and was signed into law, it would have become effective for plan years beginning after December 31, 2011. While this sort of disclosure isn’t currently required under federal law, the Department of Labor has been working to standardize disclosure requirements for defined contribution retirement plans.
While some have argued that new legislation would delay the implementation of the DOL’s regulations, others have argued that this legislation “give the force of law” to the DOL regulations and help to clarify their authority to require retirement plan providers to conform to the rules.
Either way, I’ve just learned that the Senate has proposed removing this provision from H.R. 4213. Thoughts?