Disclosure Regulations
The DOL has released regulations around fee disclosure for plan sponsors/fiduciaries and plan participants. These regulations are changes to existing rules, therefore it provides new framework for disclosing fees related to retirement plans. This site is intended to provide educational information about the regulations, including:
- Disclosure regulation details
- The impact to plan sponsors and financial professionals
- Additional resources to help you comply with the regulations
DOL releases final plan sponsor regulation, delaying disclosure deadlines
Update: On Feb. 3, the Department of Labor (DOL) released the final 408(b)(2) plan sponsor regulation, delaying by three months the deadline to comply with both it and the 404(a) participant disclosure required by plan sponsors.
Effective dates changed for both plan sponsor, participant disclosures
The effective date of the 408(b)(2) regulation has been extended to July 1, 2012. Covered service providers, including financial professionals and third party administrators (TPAs) who work with retirement plans, will now need to disclose to plan sponsor clients the fees they receive and the services they provide by July 1, 2012.
The date for plan sponsors to provide the initial disclosure to plan participants under the DOL's participant disclosure regulation is also delayed as a result of this extension. Initial disclosure under the participant disclosure regulation must be furnished no later than the later of:
- 60 days after the plan's anniversary date that occurs on or after November 1, 2011, or
- 60 days after the effective date of the plan sponsor-level fee disclosure rule (July 1, 2012)
The earliest plan sponsors would need to comply with the initial participant disclosure rules is August 30, 2012, and that date could be later depending on the plan anniversary date.
Changes from the interim final regulation
The final plan sponsor regulation contains relatively few changes from the interim regulation. It does state that a summary or guide is not required and provides additional guidance on electronic delivery. More details in our Compliance News Article.
Regulation Details
Plan Sponsor/Fiduciary Regulation
A final regulation that requires retirement plan service providers to disclose fee and service information to assist plan sponsors and plan fiduciaries in fulfilling their obligations under Section 408(b)(2) of the Employee Retirement Income Security Act of 1974 (ERISA).
Participant Regulation
A final regulation that requires plan fiduciaries to disclose certain plan, fee and investment-related information to participants and beneficiaries in participant-directed defined contribution plans that are subject to ERISA, such as 401(k) and 403(b) plans.
Questions About the Regulations?
If you have questions about the regulations, please contact your financial professional, third-party administrator (TPA) or local representative from The Principal.
