December 12, 2013 — Employees are tossing their retirement plan fee disclosures in the circular file, keeping themselves in the dark on how much their 401(k)s cost.
Ever since Aug. 30, 2012, per the Labor Department, retirement plans have been required to distribute fee disclosure documents to 401(k) participants that depict the costs and services they get from record keepers and fund managers.
Employers, in turn, are also supposed to get disclosures from service providers, including financial advisers, also spelling out the fees and services, as well as whether the service provider is acting as a fiduciary.
According to advisers and recent data from Limra, a research and marketing organization, workers seem to be doing precisely what they would be expected to do with 20-page disclosure documents: Blowing them off.
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