U.S. lawmakers weigh 401(k) fee disclosure

By Kim Dixon

WASHINGTON, June 24 (Reuters) - A U.S. congressional panel began writing legislation on Wednesday that would require more disclosure of fees charged by mutual fund companies such as Fidelity Investments and Vanguard Group.

The bill planned by the House Education and Labor Committee would require investment companies offering 401(k) pension plans to itemize several types of fees, including those for administration, transaction fees and charges for investment management.

Committee chairman George Miller, a California Democrat, has said workers have the right to know "how much Wall Street middle men siphon off from their savings" through various fees attached to 401(k) plans.

The Investment Company Institute, which represents mutual funds, opposes some provisions of the planned legislation.

"As written, the disclosure requirements are overly broad and imprecise," the fund group said in a letter on Wednesday. It also said the legislation would set a "dangerous precedent" by requiring plans to also include at least one index fund investment option.

The industry backs an alternative approach to be offered up by John Kline, a senior Republican on the panel.

The draft legislation also would change pension accounting, including lowering the trigger requiring companies with underfunded pensions to report financial and actuarial information to the government. (Reporting by Kim Dixon; Editing by Tim Dobbyn)