Testimony: 401(k) Fair Disclosure for Retirement Security Act

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On October 4, 2007, Matthew Scanlan testified before the U.S. House Committee on Education and Labor at a hearing on H.R. 3185, the 401(k) Fair Disclosure for Retirement Security Act of 2007. Appearing as Managing Director and head of Barclays Global Investors’ Americas institutional business, Scanlan was one of five witnesses called to address the proposed legislation, which sought to require greater transparency in 401(k) plan fee disclosure to both plan sponsors and participants.

Scanlan supported fee disclosure by category to plan sponsors, conflict-of-interest transparency requirements, DOL-standardized fund fact sheets, and simplified participant disclosures. He identified three structural causes of defined-contribution plan failure: inadequate contributions, low returns compounded by high fees, and the absence of a coherent distribution strategy. He also advocated for bringing defined-benefit investment disciplines — including professional management, cost efficiency, and pooled longevity risk — into the defined-contribution marketplace. His written testimony was submitted to the Congressional record and is available in full via the committee’s document archive.