DoL Releases Brochure and Study of 401(K) Plan Fees and Expenses

Washington, DC, July 1, 1998 - The Department of Labor's Pension and Welfare Benefits Administration has released a brochure directed to 401(k) participants entitled "A Look At 401(k) Plan Fees." According to the Department, the purposes of the brochure include answering commonly asked questions regarding plan fees and expenses, highlighting the most common fees, and encouraging participants to (1) make informed investment decisions, (2) consider fees as one of the several factors when making a decision, (3) compare all services received with the total cost, and (4) realize that cheaper is not necessarily better.

The brochure contains seven sections:

why consider fees,
what are 401(k) plan fees and who pays for them,
what fees are associated with individual investment choices in a 401(k) plan,
where to obtain information about the fees and expenses charged to individual 401(k) plan accounts,
what other factors might affect 401(k) plan fees and expenses,
a checklist to review 401(k) plan fees, and
other sources of information.

In addition to releasing the brochure, the Department has also made available a recent report, "Study of 401(k) Plan Fees and Expenses," prepared for the Department by an outside consulting firm. This study describes the characteristics of 401(k) plans and plan fees and expenses, and analyzes current practices regarding 401(k) plan fees.