In This Issue:
- Compliance Deadlines
This issue of Perspectives provides a comprehensive discussion of the final Department of Labor regulations on Plan Service Provider Fee Disclosures (issued on February 2, 2012 and required to be provided to plan fiduciaries by July 1, 2012) and Participant-level Fee Disclosures for Participant-Directed Plans, such as 401(k) plans, (issued on October 14, 2010 and required to be provided initially to participants who may direct investments in their accounts by August 30, 2012 for calendar year plans). Susan Serota and Kathleen Bardunias of our New York Executive Compensation and Benefits group address the scope of the requirement for plan service providers to provide certain fee-related information to plan fiduciaries to help them assess whether such fees are “reasonable” under the ERISA prohibited transaction exemption provided in ERISA section 408(b)(2) for the provision of services between a plan and a party-in-interest. Howard Clemons of our Northern Virginia office updates an earlier Client Alert to reflect the coordination of the effective dates for plan service provider fee disclosures with the participant-level disclosures effective dates. We have also included “Next Steps for Responsible Plan Fiduciaries” for each disclosure requirement. (p.2)
- Department of Labor Issues Final Regulations on Fee Disclosures for Pension Plans
On February 2, 2012, the Department of Labor released the final regulations under Section 408(b)(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) subjecting certain retirement plan service providers to new disclosure obligations that are intended to assist retirement plan fiduciaries in assessing the “reasonableness” of the contract or arrangement in connection with the ERISA section 408(b)(2) prohibited transaction exemption. (p.4)
- Department of Labor Issues Final Regulations on Fee Disclosures for Participant-Directed Plans
On October 14, 2010, the Department of Labor released final regulations detailing a plan administrator’s fiduciary responsibilities regarding disclosure of plan and investment-related information, including fee and expense information, to participants and beneficiaries of participant-directed individual account plans such as 401(k) plans. (p.8)
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