Fiduciary-Level Fee Disclosure
EBSA previously published an interim final 408(b)(2) regulation on July 16, 2010, requiring retirement plan service providers to disclose comprehensive information about their fees and potential conflicts of interest to plan fiduciaries.
Although the new requirements are scheduled to apply to plan contracts or arrangements for services in existence on or after July 16, 2011, the department previously announced its intention to extend the deadline to Jan. 1, 2012. The department recognizes that because a final rule is not yet in place, service providers may need additional time for compliance, and the proposal, when finalized, would make the extension official.
Participant-Level Fee Disclosure
EBSA also published a final participant-level regulation on Oct. 20, 2010, requiring that employers disclose information about plan and investment costs to workers who direct their own investments. This regulation applies for plan years beginning on or after Nov. 1, 2011, with a 60-day transition provision.
The department's proposal would amend the regulation's transitional rule so that employers would have up to 120 days to furnish initial disclosures to workers. This amendment will ensure that employers obtain the information they need from service providers in order to satisfy their disclosure obligations to their workers.
Click here to read the notice of proposed extension. You may also view the press release here. For more information on the responsibilities associated with administering a retirement plan, please visit the HR360 section on the Employee Retirement Income Security Act.