ICI Supports Improved Retirement Plan DisclosureWashington, DC, December 23, 2004 - Institute President Paul Stevens discusses the Institute's longstanding support for improved disclosure for retirement plan participants, in a recent letter to the Labor Department. Background
In September, ICI General Counsel Elizabeth Krentzman testified before the Department of Labor's ERISA Advisory Council, saying that American workers should have clearer disclosures in their self-directed retirement plans, which, for many workers, is their single largest financial asset. She emphasized the Institute's strong support for "clear, meaningful, and effective disclosure" to retirement plan sponsors and participants, and she made a number of recommendations for improved disclosure. Earlier this month, the ERISA Advisory Council formally submitted recommendations to the Department of Labor intended to improve defined contribution plan disclosure. Suggestions made by the Institute that were adopted by the Council include recommendations that: - participants in certain plans be provided disclosure substantially similar to that in a fund "profile" for all pooled investments;
- plan sponsors receive information concerning service providers' potential receipt of compensation during their selection process; and
- the Department of Labor amend its worksheet for plan sponsors in order to facilitate disclosure of compensation arrangements.
ICI Position
In a recent letter, ICI President Stevens emphasizes the importance of enhancing disclosure to retirement plan participants, and states that the Institute looks forward to working with the Department of Labor as it considered the Advisory Council's recommendations. Related Links
The Institute devotes sections of this website to fee, disclosure, and retirement policy issues that affect funds and their shareholders.
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