The Senate Health, Education, Labor and Pensions Committee today held a hearing on 401(k) plan fee disclosure.
Witnesses who represented smaller providers carried on the battle to persuade Congress and regulators to get large providers and other providers of a la carte services to break out fees for individual services as much as possible.
Witnesses for firms that focus on selling bundled services raised questions about the costs and benefits of requiring detailed fee breakdowns.
R. Theodore Benna, founder of the 401(k) Association, Jersey Shore, Pa., who is sometimes called the “father of the 401(k) plan,” told the committee he has mixed feelings about the topic.
“Most employers receive fee information today, but many participants either don’t or it is hard to find,” Benna said, according to a written version of his testimony available on the committee Web site.
But “as an officer of a company that administers these plans, I am concerned about the time and cost related to complying with these regulations,” Benna said. “Greater disclosure is badly needed, but it is questionable how much of an impact greater disclosure will have.”