Investment group urges Congress to hold off on 401(k) disclosure rule

The Investment Company Institute is urging Congress to not include in the tax extender bill 401(k) disclosure fee rules championed by House Education and Labor Committee Chairman George Miller (D-Calif.) because the Department of Labor (DOL) will soon issue disclosure rules on retirement plans. 

"These regulations are the result of literally years of work within the Department, with input from all sectors of the regulated community," states an ICI letter to Senate leaders. "While the Institute expects the DOL rules to entail significant compliance costs for our industry, we support them." 

Miller has repeatedly asked the Senate to include 401(k) disclosure fee rules in the tax extender bill, which the House included in its measure. 

Federal law does not require investors to be informed about the fees taken out of their retirement accounts. The Government Accountability Office found that these fees can have a material impact on retirement plans. It states that a one-percentage-point difference in fees could cut retirement assets by nearly 20 percent over a number years. 

An ICI spokesman told The Hill that the DOL rules will not only accomplish what Miller wants to achieve, but also that congressional interference on the matter would force the Department of Labor to postpone issuing their rules, which could be announced this summer.