Meanwhile, Rep. George Miller (D-California), chairman of the House Education and Labor Committee, introduced in late July the "401(k) Fair Disclosure for Retirement Security Act of 2007" that would require, among other things, plan administrators to provide an annual benefits statement listing the fees assessed on a participant's account during the plan year, broken down by individual investments. Service providers would have to disclose to the plan sponsor all services and fees that the plan will pay. Lynn Dudley, VP of retirement policy at the American Benefits Council in Washington, says the legislations new disclosure requirements could create additional administrative burdens for employers and more confusion for plan participants. "More disclosure is not necessarily better disclosure," Dudley said in reaction to the bill being introduced. "Any enhanced disclosure requirements need to keep in mind four guiding principles: What is the context for increased disclosure? Is the information useful to participants? Will the new statements be easy to deliver? And will the new requirements increase costs?"
A bill was introduced just before Congress's summer recess that would amend the Internal Revenue Code to allow long-term care insurance to be paid for with pre-tax dollars. Under "The Long-Term Care Affordability and Security Act" (H.R. 3363), introduced by Reps. Earl Pomeroy (D-North Dakota), Jim Ramstad (R-Minnesota), Allyson Schwartz (D-Pennsylvania), and Kenny Hulshof (R-Missouri), LTC insurance would be offered in employer-sponsored cafeteria and flexible spending plans and the premiums paid with the same pre-tax dollars, thus improving the affordability and availability of LTC insurance.
Two industry officials have teamed up to co-develop a workshop on Qualified Default Investment Alternatives (QDIAs). Donald Trone, president of the Foundation for Fiduciary Studies and founder of Fiduciary360, and Louis Harvey, president of Dalbar Inc., say the QDIA workshop will be available by early fall. "The Pension Protection Act and subsequent DOL guidance provide for two new fiduciary "safe harbor-like" procedures that relieve plan sponsors from liability for investment decisions associated with participant directed retirement plans: QDIA and fiduciary advisers," the two stated in a release.