WASHINGTON, July 22 /EMWNews/ -- The U.S. Department of

Labor today announced a proposed rule that will make it easier for an

estimated 65 million participants covered by 401(k)-type plans to make

informed retirement savings decisions. The proposal would provide workers

with useful summary information, including fee and expense information, for

investment options available under their plans.



    "Our proposal is consistent with public consensus that workers need

clear and concise information, not dozens of pages of 'legalese,' about the

investment options available under their plans, and that they would benefit

greatly from having that information in a comparative format," said U.S.

Secretary of Labor Elaine L. Chao. "One of the department's top priorities

is improved disclosure to workers that will give them the information they

need to make informed investment decisions."



    The centerpiece of the proposed regulation is a requirement to provide

investment-related information in a comparative chart or similar format. As

part of the proposal, the department has developed a model chart for

complying with this requirement, while giving plan fiduciaries the

flexibility to design their own charts or comparative formats. The proposal

would also require plan fiduciaries to disclose basic information about the

plan and its investment options, such as what options are available under

the plan, how to give investment instructions, investment returns and fees

and expenses, and how to obtain more detailed information. This information

would be given to participants on a regular and periodic basis.



    In addition, the department is proposing conforming changes to its

regulation under section 404(c) of the Employee Retirement Income Security

Act.



    "We want to help workers make the most of their 401(k)-type plans by

ensuring that they are provided the information they need to make wise

investment decisions," said Bradford P. Campbell, assistant secretary for

the Labor Department's Employee Benefits Security Administration.



    When finalized, the proposed regulation would be effective for plan

years beginning on or after Jan. 1, 2009. Comments on the proposed

regulation should be directed to the U.S. Department of Labor, Employee

Benefits Security Administration, Room N-5655, 200 Constitution Ave. N.W.,

Washington, D.C. 20210, Attention: Participant Fee Disclosure Project;

electronically to



    [email protected] or via http://www.regulations.gov. The proposal is scheduled to

be published in the July 23 edition of the Federal Register.



    U.S. Department of Labor releases are accessible on the Internet at

http://www.dol.gov. The information in this news release will be made available in

alternate format (large print, Braille, audio tape or disc) from the COAST

office upon request. Please specify which news release when placing your

request at 202-693-7828 or TTY 202-693-7755. The Labor Department is

committed to providing America's employers and employees with easy access

to understandable information on how to comply with its laws and

regulations. For more information, please visit http://www.dol.gov/compliance.