401(k) fees: Who's paying and who's paying attention

The US Department of Labor (DOL) launched a multi-pronged campaign in November 1997 regarding 401(k) administrative fees. Plan participants and plan sponsors should have accurate and understandable information about the fees they are paying. However, employers also should have accurate information a...

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Bibliographic Details
Published inWorkspan (Scottsdale, Ariz.) Vol. 41; no. 7; p. 26
Main Author Martha Priddy Patterson
Format Magazine Article
LanguageEnglish
Published Scottsdale WorldatWork 01.07.1998
Subjects
Administrative expenses
Cost control
Deferred compensation
Employees
Employers
ERISA
Fees & charges
Government agencies
Retirement benefits
Scandals
United States > US
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Summary:The US Department of Labor (DOL) launched a multi-pronged campaign in November 1997 regarding 401(k) administrative fees. Plan participants and plan sponsors should have accurate and understandable information about the fees they are paying. However, employers also should have accurate information about the overall administrative costs of the 401(k) plan whether paid by the employee, the plan or the employer. When comparing the plans' administrative costs, regulators, employers and employees should be careful to compare the costs of services rather than comparing overall administrative costs. The number of plan participants and the plan's asset value by necessity affect the level of administrative fees. According to a KPMG survey, employers with 200 or more employees pay recordkeepers' fees in 70% of the plans, rather than having those fees paid by the plan or the employees participating in the plan.
ISSN:1529-9465