ProPublica has launched an investigative effort asking 401(k) participants, employers, and industry experts to share information about fees, investment products, and plan disclosures as the Trump administration moves forward with regulatory changes affecting workplace retirement accounts.
The nonprofit news organization says it needs detailed data from plan participants because many fee structures and product details are not made public but are disclosed to account holders. ProPublica is specifically seeking input on how 401(k) plans are performing, what fees participants are paying, and whether advisory services are providing value.
What the Left Is Saying
Democratic lawmakers and consumer advocates have raised concerns about retirement plan fee transparency for years. Senator Patty Murray of Washington, who has championed legislation to lower 401(k) fees, has previously argued that workers deserve clear information about where their money is going. "Hardworking Americans should not be losing thousands of dollars to hidden fees without even knowing it," she said in a past statement on the issue.
Progressive advocacy groups argue that allowing less-regulated alternative investments like private equity and cryptocurrency in 401(k) plans could expose workers to higher-risk products with opaque fee structures. The Economic Policy Institute has warned that retirement savers who lack sophisticated financial knowledge could be vulnerable to underperforming investments with excessive charges.
Worker advocates contend that weakening enforcement of the Employee Retirement Income Security Act, which sets fiduciary standards for retirement plans, would benefit financial industry profits over worker outcomes. They say plan sponsors have an obligation to act in participants' best interests regardless of what investment products become available.
What the Right Is Saying
Conservative commentators and free-market advocates argue that expanding investment options gives workers more control over their retirement savings. The Heritage Foundation has long maintained that overly restrictive regulations limit innovation and reduce returns for savers who could benefit from alternative asset classes with strong historical performance.
Business groups, including the U.S. Chamber of Commerce, have supported efforts to modernize 401(k) plan rules. They argue that private equity and other alternatives can offer diversification benefits and potentially higher returns compared to traditional stock and bond portfolios, which could help workers build larger retirement balances over time.
Some Republican lawmakers contend that current fee disclosure requirements are overly burdensome for small business owners who sponsor retirement plans. Senator Tim Scott of South Carolina has introduced legislation aimed at reducing compliance costs for employers offering 401(k) benefits, arguing that fewer regulatory obstacles would encourage more companies to offer retirement plans to workers.
What the Numbers Show
According to Department of Labor data, there are approximately 700,000 private-sector retirement plans covering about 88 million active participants with total assets exceeding $10 trillion. The average 401(k) balance for workers nearing retirement age was approximately $232,000 in recent Federal Reserve surveys.
A 2023 study by the Government Accountability Office found that workers in small employer plans paid fees averaging 0.73% of assets annually, compared to 0.37% for those in large plans. The GAO noted that higher fees can significantly reduce retirement savings over a 30-year period, with a 1% fee difference potentially costing a worker more than $100,000 in lost growth.
Private equity investments in retirement accounts remain relatively rare. Industry surveys indicate less than 5% of 401(k) plans currently offer private equity options, though that share could grow if regulatory changes proceed as outlined in recent DOL guidance documents.
The Bottom Line
ProPublica's data-gathering effort comes as the administration signals it will expand what investment products employers can offer through workplace retirement accounts. The news organization is not requesting account balances or personal identification information but wants participants to share plan disclosure documents and fee information.
What happens next depends on regulatory developments at the Department of Labor, where new guidance could make alternative investments more accessible to 401(k) plans. Readers with retirement accounts who wish to contribute to ProPublica's investigation can find a questionnaire at propublica.org/getinvolved/share-401k-fees-retirement-investment.