Defined Contribution Fee Disclosure Primer Released

BETHESDA, MD - May 1, 2006 - Recognizing that clear information on defined contribution plan fees is crucial to employees participating in these plans, the Committee on Investment of Employee Benefit Assets of the Association for Financial Professionals (CIEBA of AFP) today released a primer on "Defined Contribution Fee Disclosure Best Practices."

The primer outlines CIEBA's views on fee disclosure and general guidelines and investment-specific considerations for sponsors developing fee disclosure materials for 401(k) or other types of defined contribution plans. The booklet also contains sample disclosure statements for different types of plan services and/or investments.

ERISA fiduciaries must make decisions in the best interest of plan participants and beneficiaries and ensure that the costs associated with retirement plans are both appropriate and reasonable. Good disclosure of costs and fees associated with defined contribution plans is especially important, since employees' retirement security is dependent on how much they contribute, how the contributions are invested, and the performance of these investments, net of costs to the participants. In light of this, Defined Contribution Fee Disclosure Best Practices was developed by members of CIEBA's Defined Contributions Subcommittee as a practical guide for plan sponsors. CIEBA members manage $457 billion in defined contribution assets on behalf of 5 million participants.

Copies of Defined Contribution Fee Disclosure Best Practices is available at http://www.afponline.org/pub/pdf/Fee_Disclosure_Primer_Final.pdf

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The Committee on Investment of Employee Benefit Assets is the voice of the Association for Financial Professionals on employee benefit plan asset management and investment issues. CIEBA is a nationally recognized forum for ERISA-governed corporate pension plan sponsors on fiduciary and investment matters. CIEBA represents more than 110 of the nation's largest retirement funds. Its members manage $1 trillion in defined benefit and defined contribution plan assets, covering 15 million participants.