While President Obama prepares to unveil his proposed changes to financial industry regulation, House members are focusing on two bills that will enforce federal protection for workers participating in employer-sponsored retirement plans.
The Health, Employment, Labor, and Pensions Subcommittee of the House Education and Labor Committee will vote Wednesday on both the 401(k) Fair Disclosure for Retirement Security Act and the Conflicted Investment Advice Prohibition Act of 2009.
The 401(k) legislation, if enacted, will require complete fee disclosure from providers in quarterly statements, along with full fee disclosure to employers. The ruling will also require providers explain financial relationships and whether potential conflicts of interest exist. Provisions also include full disclosure of investment risk and objective before enrollment, and the inclusion of at least one index fund in the 401(k) investment line-up.