The U.S. Department of Labor’s Employee Benefits Security Administration has issued a final rule to give the estimated 72 million participants covered by 401k-type retirement plans greater information regarding the fees and expenses associated with their plans in order to better manage their retirement savings.

Many 401k-type plans allow workers to make their own investment decisions. Current law does not require that all workers be given the information they need to make informed investment decisions or, when information is given, that it is furnished in a user-friendly format.

This rule will ensure that all workers who direct their plan investments have access to the information they need to make informed decisions regarding the investment of their retirement savings, including fee and expense information. Under the rule, workers will receive this information in a format that enables them to meaningfully compare the investment options under their plans.

The final regulation requires plan fiduciaries to:

• Give workers quarterly statements of plan fees and expenses deducted from their accounts.
• Give workers core information about investments available under their plan including the cost of these investments.
• Use standard methodologies when calculating and disclosing expense and return information to achieve uniformity across the spectrum of investments that exist in plans.
• Present the information in a format that makes it easier for workers to comparison shop among the plan’s investment options.
• Give workers access to supplemental investment information in addition to the basic information required under the final rule.