Rep. Andrews joins Chairman Miller to introduce 401(k) disclosure bill

WASHINGTON, DC  - Last week, Congressman Andrews joined Chairman George Miller (D-CA) of the House Education & Labor Committee to introduce a bill that will help workers make the best possible decisions regarding their retirement options by requiring simple fee disclosure on the investment options contained in their employer's 401(k) plan. This legislation, known as the 401(k) Fair Disclosure for Retirement Security Act (H.R. 1984), is designed to create a more secure retirement system and prevent the massive $2 trillion losses that our retirement assets experienced over the last year.

"When a worker spends most of their lifetime investing their hard-earned dollars into an account for their retirement and later discover that they were being charged fees that contributed to a significant loss of their nest egg, they understandably lose trust and confidence in the system," said U.S. Rep. Rob Andrews (D-NJ), chairman of the Subcommittee on Health, Employment, Labor and Pensions. "The lack of transparency in the 401(k) system is unacceptable and must end now."

Under current law, investment firms are not required to disclose all fees associated with workers' retirement. When provided, information is often hidden and very difficult to find and understand. According to the U.S. Government Accountability Office, retirement plans with a mere 1-percentage-point in excessive fees can significantly reduce a worker's 401(k) account balance by as much as 20 percent or more over a career.

At a time when Americans' retirement security is increasingly vulnerable, Congressman Andrews continues to support legislation like the 401(k) Fair Disclosure for Retirement Security Act (H.R. 1984) to ensure that workers' hard-earned retirement savings is as secure as possible, despite our country's current economic downturn.

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