Labor Dept finalizes 401(k) fee disclosure plan

(Reuters) - The U.S. Labor Department unveiled a final 401(k) fee disclosure rule on Thursday that requires plan providers to give more details about what employers pay for retirement plan administration and other services.

The enhanced disclosures required by the rule will increase transparency in the retirement plan market and encourage employers who sponsor the plans to "shop around for service providers," said Phyllis Borzi, assistant secretary of the Department of Labor's Employee Benefits Securities Administration, in a press call with reporters on Thursday.

That will eventually lead to more money in accounts for retirees, she said.

Plan sponsors, who have been concerned about meeting an April compliance deadline in an earlier proposed version of the rule, will now have until July 1 to make the necessary disclosures, Borzi said.

http://www.reuters.com/article/2012/02/02/us-usa-labor-401ks-idUSTRE8111H920120202