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Pushing Employers to Offer Better Retirement Plans (Bloomberg)

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The Department of Labor’s Employee Benefits Security Administration issued new regulations to disclose how much employees are paying in retirement plan fees and investment fund expenses. By July 1, pension plan providers must send disclosure to employers. By Aug. 30, employers must send disclosures to employees. “From a small business owner’s perspective, this will enable him to offer better plans at lower costs because he’ll have the data [from plan providers] for the first time,” said Frank Armstrong, president of Investor Solutions. “He’s been operating without the information he really needs to make the decisions up until now.” Armstrong suggests employers replace plans that are overcharging and underperforming. If they don’t, employees could take legal action.