Articles

Good Enough For Government

In Good Enough For Government, Matt on October 15, 2010 by Two Barbers Tagged: , , , ,

The 401(k)

An announcement came from the Department of Labor, headed by the former U.S. Congresswoman from California’s 32nd district covering parts of LA, Hilda Solis, that companies providing 401(k) plans to their employees are going to be required to meet new, higher standards for disclosure of vital information.

Beginning Jan. 1, 2012, 401(k) quarterly reports distributed by employers will have to include clearer and more detailed figures on less obvious charges such as administrative expenses and fees, indirect expenses and fees, increases based on percentage of total assets, as well as dollar amount invested, as well as performance data presented in a digestible waaaassssszzzzzzzszzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

Sorry, I passed out on the keyboard.

According to the Associated Press, there are 72 million workers enrolled in 401(k) type plans worth $7 trillion in assets, about 11 million of them provided by Fidelity, according to Bloomberg News, for a total asset value of $743 billion. Putnam, based in Boston, manages accounts worth $17 billion (again, in assets). I can’t explain exactly what that means to the big picture or why it’s important to know, but I do know it is something.

In July, DOL announced rules that will, in the same vein, require the companies that provide the 401(k) accounts to the companies that provide them to their employees, to make the kind of information the second companies, the employers, need to better inform their employees, more accessible. This will take effect on July 16th, 2011.

Since we’re talking about the DOL, it will receive $116,715 in total funding, $102,779 billion of which is mandatory and $13,967 discretionary.

1. Article from Associated Press

2. Article from Bloomberg

3. Department of Labor Section of the Budget

4. (not referenced int he article) Department of Labor Press Release on 401(k) rules

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