The recent 401k lawsuits involving Wal-mart and Ameriprise should prompt any plan sponsor to finally review their existing plan. At a minimum, business owners should thoroughly examine the fees involved with their plan especially if they have not had an independent review within the past 3 years. Unfortunately many plan sponsors choose to do nothing as employees continue to suffer at the excessiveness of plan providers. The Department of Labor should be applauded for their willingness to protect the rights and futures of hardworking individuals. Below are 10 more reasons to make sure your plan complies with upcoming regulations even as ASPPA asks for another extension of 408(b)2 and 404(a)(5).
It’s no surprise that in a recent article, “ASPPA to DOL: Extend Fee Disclosure Rule Deadline”, the group has urged the DOL to extend 408(b) 2 and 404(a)(5) regulations yet again. This comes after the rules were extended from July 2011, to January 2012 to April 2012. Craig Hoffman, general counsel and director of regulatory affairs for ASPPA tries to warrant a delay by saying “significant uncertainty remains”. Nothing could be further from the truth. There has been so much information circulated on the topic of hidden excessive fees and what to do to prepare, unless you’ve been under a rock or you simply don’t care, steps should have already been implemented to provide a better 401k plan for your employees. This effort by ASPPA seems like another attempt to continue the gravy train that’s been perpetuated for so long by service providers who put their pockets ahead of plan participants.