The 401(k) plan has become the sole source of retirement for most Americans. The 401(k) plan was intended to be a supplement to a pension plan. The trend toward more 401(k) and less pension plans has made it imperative to control costs amd improve quality. The future retirement for most Americans is at stake. Unless, of course, you believe the government will take care of you.

Allen Vaughn, president and chief fiduciary auditor for 401-k.pro FiduciaryManagers/The 401k Advisory Group, Inc. in Dunwoody, Ga., said he believes 2012 will be the year of lawsuits.He fears the hoopla over the fee disclosure regulations will be like “watching a tornado destroy a town. … What is going to happen with 408(b)(2), one thing I advocated for, is it is going to show people the expenses, which I’m all for, that will make people smart shoppers. People need to see the benchmarks. They need to see what the average fund expenses are for record keeping, the average commission brokers make and the fee advisors make.”

Vaughn said he’s afraid that delayed rules will make it easier for companies to find new ways to hide their fees. “It gave insurance companies time to reconfigure things so they could look like they have a clean slate.”

The delay in regulations give insurance companies and brokerage firms new and innovative ways to hide fees. No matter where the fees are, unnecessary or unreasonable fees hurt the ability of participants to retire.

Please comment or call to discuss how this affects you and your company plan, no matter what the size.