The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has released a final rule amending the initial compliance dates for its retirement plan fee disclosure rules. The amendments adopted by the final rule are effective as of July 15, 2011.

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.
The new requirements were scheduled to apply to plan contracts or arrangements for services in existence on or after July 16, 2011. To allow covered service providers and plan fiduciaries additional time to review any changes made to the interim final regulation and make final modifications to their systems and disclosures, the final rule extends the effective date for the fiduciary-level fee disclosure rule from July 16, 2011 to April 1, 2012.

Participant-Level 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. The regulation applies for plan years beginning on or after Nov. 1, 2011, and provided for a 60-day transition provision.
As a result of the final rule, the transitional provision of the final participant-level disclosure regulation is amended to require that initial disclosures be furnished no later than the later of:

  • 60 days after a first day of the first plan year beginning on or after November 1, 2011, or
  • 60 days after the effective date of the fiduciary-level fee disclosure rule.

The transitional rule also provides that certain quarterly disclosures must be furnished no later than 45 days after the end of the quarter in which the initial disclosures are required to be furnished to participants and beneficiaries under the transitional rule.

Additional Information

To read the final rule in its entirety, please click 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

Topics: Retirement Planning

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