Twelve associations representing employers that sponsor retirement savings plans and the financial institutions that provide plan services submitted recommendations to the Department of Labor for improved disclosure of investment fee information to 401(k) plan participants.

The DOL has solicited input on potential revisions to existing guidance on fee disclosure. The department's review comes in the wake of lawsuits claiming excessive fees that are hidden from participants and a November 2006 GAO report recommending that Congress amend ERISA to make it easier for plan participants to compare fees when they are evaluating investment options.

The joint recommendations submitted July 25 point out that employers and employees have markedly different disclosure needs.

“It is important to avoid the temptation to overload participants with detailed and voluminous information that can impair sound decision-making,” the associations said in a statement.

Other recommendations include:

-Providing fee information alongside other key facts that

participants rely upon to make sound investment decisions, including historical performance, relative risks, investment objectives and the identity of the fund adviser or manager.

-Facilitating comparison among investment options, but giving employers flexibility to determine how the information is presented.

- Providing fee and other investment information at enrolment, with annual notification to participants about where they can find such information.

The 12 associations who submitted the recommendations are American Bankers Association, American Benefits Council, American Council of Life Insurers The Committee on Investment of Employee Benefit Assets, The ERISA Industry Committee, The Financial Services Roundtable, Investment Company Institute, National Association of Manufacturers, Profit Sharing/401k Council of America, Securities Industry and Financial Markets Association, Society for Human Resource Management, and U.S. Chamber of Commerce.

Twelve associations representing employers that sponsor retirement savings plans and the financial institutions that provide plan services submitted recommendations to the Department of Labor for improved disclosure of investment fee information to 401(k) plan participants.

The DOL has solicited input on potential revisions to existing guidance on fee disclosure. The department's review comes in the wake of lawsuits claiming excessive fees that are hidden from participants and a November 2006 GAO report recommending that Congress amend ERISA to make it easier for plan participants to compare fees when they are evaluating investment options.

The joint recommendations submitted July 25 point out that employers and employees have markedly different disclosure needs.

“It is important to avoid the temptation to overload participants with detailed and voluminous information that can impair sound decision-making,” the associations said in a statement.

Other recommendations include:

-Providing fee information alongside other key facts that

participants rely upon to make sound investment decisions, including historical performance, relative risks, investment objectives and the identity of the fund adviser or manager.

-Facilitating comparison among investment options, but giving employers flexibility to determine how the information is presented.

- Providing fee and other investment information at enrolment, with annual notification to participants about where they can find such information.

The 12 associations who submitted the recommendations are American Bankers Association, American Benefits Council, American Council of Life Insurers The Committee on Investment of Employee Benefit Assets, The ERISA Industry Committee, The Financial Services Roundtable, Investment Company Institute, National Association of Manufacturers, Profit Sharing/401k Council of America, Securities Industry and Financial Markets Association, Society for Human Resource Management, and U.S. Chamber of Commerce.