Congressional Testimony on Hidden Fees in 401(K) Plans
23 Pages Posted: 13 Mar 2007 Last revised: 9 Apr 2008
Date Written: March 6, 2007
Very few matters of social importance are more complex than the one before you today. This particular issue is not only about uncovering obscure dollars unscrupulously extracted from the account balances of America's workforce, but it is also about correcting the culture that has permitted the problem to thrive in the first place. This written testimony will explain what the culture is, why it exists, how it has evolved over time, how it violates basic economic principles, the integrity of rules of fiduciary prudence, the exclusive benefit rule under ERISA, and other common sense practices that are critical for delivery of expected results from employer defined contribution retirement plans.
Keywords: Economics, Finance, Retirement, Social Security, 401(K), Pension, Fees, Profit Sharing
JEL Classification: A10, E40, G10, G20, G30, H20, H80, J30, K00
Suggested Citation: Suggested Citation