WASHINGTON, D.C. – Senators Tom Harkin (D-IA) and Herb Kohl (D-WI) today issued the following statement as the House Education and Labor Committee began consideration of legislation to provide employees with information on 401 (k) fees. Harkin and Kohl are the Senate sponsors of similar legislation – the Fair Disclosure for Retirement Security Act of 2009. Harkin is a senior member of the Senate Health, Education, Labor and Pension (HELP) Committee and Kohl is Chairman of the U.S. Senate Special Committee on Aging.
“More and more people are relying on their 401(k) plans for retirement, which means it is crucial that consumers have all the information they need to make sound investment decisions. Employees should be told everything about what they pay in fees in a clear manner and an easily accessible format. Many people don’t realize that a small administrative difference, such as a single additional percentage point in pension plan fees over the 30 years that they are investing, can cut their final retirement account balance by as much as 25 percent.
“We applaud the House action today and will continue to fight to ensure workers have the knowledge they need to prevent their retirement accounts from being reduced by excessive fees.”
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