The U.S. Department of Labor (DOL) issued final regulations on February 3, 2012, regarding compensation, expense, and fee information that must be disclosed by retirement plan vendors (e.g., third-party administrators, brokers, consultants, advisors, and/or recordkeepers) to plan fiduciaries (e.g., the board of directors or members of an authorized committee of the board, officers, and other employees of the company responsible for plan administration).
What Do the Regulations Mean to Retirement Plan Fiduciaries?
These regulations require vendors to disclose fee information, but it is the plan fiduciaries who will bear legal responsibility for (1) ensuring that vendors make proper disclosure, (2) reporting (and potentially terminating) vendors who fail to make proper disclosure, and (3) communicating information disclosed by vendors to plan participants (i.e., a vendor's violation of the fee disclosure rules potentially creates personal liability for plan fiduciaries).
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