The company will review and interpret a service provider’s Employee Retirement Income Security Act (ERISA) Section 408(b)(2) fee disclosure document and plainly summarize its fees in dollars, both direct fees and indirect fees paid by mutual fund companies. There will be no cost for this service.
The company will also summarize its fees for providing the same services in the same format, allowing for a side-by-side comparison. Employee Fiduciary proposed a similar fee summary in their response to the Department of Labor’s request for comments related to 401(k) fee disclosure reform.
“Current fee disclosure regulations only address a small part of the needs of 401(k) plan fiduciaries,” says Eric Droblyen, president of Employee Fiduciary, based in Mobile, Alabama. “Because the disclosure document’s format is open to broad interpretation, many providers have used this discretion to effectively bury fees in pages of dense language. Plan fiduciaries are unable to sort out the fees they are paying. Our service is a direct response to overcoming the inadequacies of the current regulations.”
Plan sponsors may request the new service online at http://www.employeefiduciary.com/401k-fee-comparison/.
Employee Fiduciary is a 401(k) plan provider for small businesses, offering retirement plan recordkeeping and administration services.