NEWS RELEASE

July 22, 2008
PR-08/13
For additional information:
Jason Hammersla
202-289-6700

DOL proposed disclosure regulations represent practical,
straightforward approach to retirement plan fees

WASHINGTON, D.C. — “American Benefits Council members, representing retirement plan sponsors across the country, are pleased that the U.S. Department of Labor (DOL) has proposed reasonable, straightforward regulations for disclosure of defined contribution plan fee information to employees,” said Council president James A. Klein. “Upon our initial review, the DOL proposal appears to provide simple yet meaningful disclosure to plan participants.”

Klein continued, “The Council strongly supports transparency of retirement plan fee and related information so that individuals have all the tools they need to invest wisely for their future. For this reason, we are particularly gratified that the proposed regulations appear to address plan fees not in isolation, but as part of a package of useful information on plan investments (such as historical rate of return and risk level) that participants can use to make educated savings choices.”

The DOL proposal represents the last of three regulatory projects to address defined contribution plan fees, following previous issuances on disclosure to the federal government and disclosure from service providers to plan sponsors. The Council has worked cooperatively with DOL on these projects and engaged in a constructive dialogue with Congressional lawmakers as they examined the issue earlier this year.

The Council will review the proposed regulations thoroughly and intends to submit official comments before the September 8 deadline. “The timetable for finalization of these rules is ambitious, but we look forward to working with DOL to ensure orderly implementation by retirement plan sponsors and service providers,” Klein said.

To arrange an interview with a Council staff member, please contact Jason Hammersla, Council director, communications, at jhammersla@abcstaff.org or by phone at (202) 289-6700.

[The proposed regulations, a model comparative chart, a official fact sheet and DOL news release are available on the Employee Benefits Security Administration Web site.]

The American Benefits Council is the national trade association for companies concerned about federal legislation and regulations affecting all aspects of the employee benefits system. The Council's members represent the entire spectrum of the private employee benefits community and either sponsor directly or administer retirement and health plans covering more than 100 million Americans.