Pushing for 401k reform
retirement programs. Marketplace’s Steve Tripoli says Congressional leaders are pushing for hearings.
STEVE TRIPOLI: The Government Accountability Office says investors can’t tell from their plans’ disclosure information whether they’re getting a good deal. Now there’s a series of lawsuits.
St. Louis Attorney Jerome Schlichter’s firm is suing several companies including mutual fund giant Fidelity. Schlichter says the suits target fees and a lack of transparency in how they’re charged.
JEROME SCHLICHTER: People have not been able to determine what the fees are and the complaints allege that the fees are excessive.
A new pension-reform law wants investors to have more information about 401k plans. The law makes it less risky for companies to give their workers investment advice.
Jerome Schlichter wants more reform, starting with full disclosure of all fees.
SCHLICHTER: And a corollary of that is reduction of those fees with the full light of day shining on them.
Add in mounting allegations that some retirement plan managers have conflicts of interest and you can see how a push for greater reform may become unstoppable.
I’m Steve Tripoli for Marketplace.
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