401(k) legislation slammed

Under the legislation, American workers will now receive complete information about fees that could be cutting into their 401(k)-style retirement savings.

Bradford Campbell, assistant secretary for the US Department of Labor's Employee Benefits Security Administration, said: "Unfortunately for America's workers, retirees and their families, the committee-passed bill would make 401(k) fee disclosure more complex and expensive than it needs to be.

"Meanwhile, the Labor Department is moving ahead with fee disclosure regulations that will empower workers, retirees and families by giving them the information they need to make informed retirement savings decisions."

By a vote of 25 to 19, the committee passed the 401(k) Fair Disclosure for Retirement Security Act (H.R. 3185), which is designed to help workers shop around for the best retirement investment options by providing information on how much in fees is taken from their retirement accounts.

Current law does not require disclosure of certain fees, and even for fee information that is available, it can be difficult for workers to find and evaluate.

George Miller, chairman of the House Education and Labor Committee, said the purpose of the legislation was to take these hard-earned savings away from the special interests and return them to the retirement accounts of American workers.

"For too long, companies in the financial services industry have maintained a stranglehold on retirement savings that they didn't earn and that don't belong to them," said Miller.

"Workers are entitled to clear and complete information about their own savings."