I RECENTLY CALLED the investment company that runs my 401(k) plan to test how easy (or difficult) it is to figure out what fees I pay for my retirement account.

The first representative I spoke with tried to convince me that I don't really pay anything but short-term trading fees if I sell particular funds. I called a second time, asking specifically about the "management fee" and "expense ratio" on my holdings. A second phone rep described it as a "very small percentage" taken out of the fund each year, but which I wouldn't "ever" see as a charge. OK, so does the expense ratio come out of my account or not? "In a roundabout way," he conceded. Uh-huh.

Most of us don't really know what we pay for our 401(k)s, but we have a nagging suspicion it's a lot more than zero. An AARP survey last year found that 83% of people don't know how much they pay for their plan but nearly the same percentage called fees an important consideration. And they'd be right. According to the Department of Labor, if you have $25,000 in your 401(k) today and over the next 35 years you average a 7% return and pay 0.5% in fees and expenses, you'll have $277,000 at retirement. But add another 1% in fees, and you'll have just $163,000 in retirement. That's a 28% reduction.

The good news is change is afoot. The bad news: We've had to wait a long time and we may have to wait even longer.

The Labor Department is running on a tight schedule to finalize a new rule on 401(k) fees by the end of this year. The proposed requirement is part of a broader package that would require investment firms to disclose more information on fees to companies that sponsor 401(k)s, as well as for companies in turn to disclose more information to employees.

If this rule is implemented intact, every year your employer would have to give you info comparing the performance of each investment choice offered via your 401(k) compared to their benchmarks' returns over different time periods. Another chart would show each product's annual operating costs and other shareholder fees, such as sales or service charges. (See charts on the next page.)

The regulation would also require your company to give you the actual dollar amount charged to your account every quarter for admin fees, and other costs such as for personal loans.

Judging by the public reaction so far, investors want this rule to go through. The DOL is taking comments through Sept. 8.

Yes, you can already get fund performance and expense info online. But viewing it directly in a single standardized, easy-to-read page (vs. fishing through prospectuses on Morningstar) will save time and money by allowing us to shop for better deals. The added transparency could also pressure the industry to lower fees.

Unfortunately, chances are, "the whole industry of course will have concerns about complying by Jan. 1," says Ted Benna of Malvern Benefits, who developed the first 401(k) and has been pushing for better fee disclosure for years.

Jan Jacobson, senior counsel of retirement policy for the American Benefits Council, which represents companies sponsoring 401(k) plans and supports the rule, says the current deadline "is a pretty aggressive timetable so I wouldn't be surprised to see this slip to 2010."

If the rule doesn't take effect before Bush's term ends, the next president, particularly if he's a Democrat, might not be keen on taking up the prior team's projects. There's also support for stalling in Congress. Rep. George Miller (D., Calif.), chairman of the House Education and Labor Committee, contends the rule doesn't do enough and wants breakdowns of more detailed fee information.

For DOL's part, Assistant Labor Secretary Bradford Campbell is "confident we can finish the rule-making process" by year's end. The question is whether companies can logistically comply with the rule by Jan. 1, 2009.

Considering that 401(k)s aren't exactly a new invention, and that individuals want and need more control over their retirement dollars, this simple fee disclosure requirement is long overdue. If you agree, you can add your two cents by emailing DOL at e-ori@dol.gov.

Proposed 401(k) Disclosure Forms

Performance Information
			Average Annual Total Return as of 12/31/0X			Benchmark/ Index as of 12/31/0X
Name/Type of Option	Mgmt.	Fixed Return/ Term	1yr.	5yr.	10yr.	1yr.	5yr.	10yr.
STOCK FUNDS
A Fund/ S&P 500 Index	Passive	NA	15.6%	6.1%	8.3%	15.8%	6.2%	8.4%
B Fund/ Large Cap	Active	NA	8.9%	0.22%	NA	-8.9%	5.9%	12.2%
C Fund/ Int'l Stock	Active	NA	4.3%	5.2%	11.2%	26.9%	15.4%	8.1%
D Fund/ Mid Cap ETF	Passive	NA	15.0%	12.7%	1.4%	15.0%	13.0%	12.0%
BOND FUNDS
E Fund/ Bond Index	Passive	NA	4.3%	5.2%	6.2%	4.3%	5.1%	6.2%
OTHER
F Fund/ GICs	Active	NA	4.7%	4.4%	5.0%	5.0%	3.0%	3.8%
G Fund/ Stable Value	Active	NA	4.3%	4.0%	4.9%	4.7%	3.4%	4.3%
H 200X GIC	NA	4% / 2 yr.	NA			NA

Fees and Expense Information
Name/Type of Option	Total Annual Operating Expenses*	Shareholder/Shareholder-Type Fees**
STOCK FUNDS
A Fund/ S&P 500 Index	0.18%	$20 annual service fee assessed for accounts holding less than $10,000. May be waived in certain circumstances.
B Fund/ Large Cap	2.45%	4.25% deferred sales charge against amounts redeemed within 12 months of purchase.
C Fund/ International Stock	0.79%	5.75% sales charge against amounts invested.
D Fund/ Mid Cap ETF	0.20%	4.25% sales charge against amounts invested or redeemed.
BOND FUNDS
E Fund/ Bond Index	0.50%	N/A
Other
F Fund/ GICs	0.46%	10% charge against amounts withdrawn within 18 months of initial investment.
G Fund/ Stable Value	0.65%	Dollars withdrawn may not be transferred to a competing fund for 90 days after withdrawal.
H 200X GIC	NA	12% charge against amounts withdrawn before maturity.

* Total Annual Operating Expenses are ongoing expenses paid indirectly from your investment in this option each year, expressed as a percentage of the value of your investment in the option (e.g., expense ratio).

** Shareholder/Shareholder-Type Fees are fees paid directly from your investment in this option (e.g., sales loads, sales charges, deferred sales charges, redemption fees, exchange fees, account fees, purchase fees, transfer or withdrawal fees, surrender charges, contract maintenance fees, and mortality and expense charges).

Source: Department of Labor

Also See:
401(k) Debit Cards Can Put Retirement at Risk
401(k) Investors Can Sue for Account Mismanagement
Employers Offer New 401(k) Option: Annuities