The Department of Labor’s Employee Benefits Security Administration (DOL/EBSA) announced new guidance as featured below. You can subscribe to DOL/EBSA’s home page for updates
Fee Disclosure Guide
On March 12, the Department of Labor’s Employee Benefits Security Administration (DOL/EBSA) issued a proposed rule that would require pension plan service providers to furnish employers and other plan fiduciaries with a guide to assist them in navigating fee disclosure requirements.
In 2012, DOL/EBSA published a final rule requiring companies that provide certain services to employer-sponsored 401(k) plans to furnish detailed information about their services and the compensation they’ll receive, including payments from third parties. The rule allows such companies to use existing contracts and other documents to provide this information to plan fiduciaries. DOL/EBSA has found that the fee information is often contained in lengthy contract documents, or spread across multiple documents.
The proposed rule would amend the 2012 rule to require that covered service providers furnish a guide if disclosures are made using multiple or lengthy documents. The guide must specifically identify the document, page or other specific locator, such as a section, that allows the employer to quickly and easily find fee information.
The notice also references a DOL/EBSA announcement to conduct focus group sessions with fiduciaries to pension plans with fewer than 100 participants. This focus group testing explores current practices and effects of the 2012 fee disclosure rule. The focus groups will provide additional information about the need for the proposal and what disclosure formats may be most useful to plan fiduciaries.
See the fact sheet for more information.
Outreach and education
For notice of upcoming events as they are scheduled, subscribe to DOL/EBSA’s website home page. DOL/EBSA conducts seminars for small businesses on retirement plans and health benefits plans.