It turns out that the much ballyhooed 401(k) retirement plan feedisclosure rules that went into effect last year might not have reached many investors.
This summer, new feedisclosure notices that more clearly break down plan fees were sent out by 401k providers, and indeed, they are a solid step toward transparency and empowerment.
"The feedisclosure regulations may very well turn out to be the most important change in the history of the 401(k) plan, " said Mike Alfred, chief executive of retirement-plan research firm BrightScope Inc.
The Department of Labor feedisclosure rules that went into effect last year were intended to shed light on just how much 401(k) participants are paying in fees, to make for more informed consumers.
While reforms like the feedisclosure rules from the U.S. Department of Labor (slated to take effect July 1) are positive steps, the Demos model described in their report shows how listing fees on account statements will not address the other factors that keep fees high nor fix the structural weaknesses in the current risky, individualized retirement system.