New Guidance for Plan Administrators and Service Providers on Retirement Plan Fee Disclosure Rules
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has issued guidance to help plan administrators and service providers comply with new rules for improving the transparency of fees and investment expenses in retirement plans. A set of frequently asked questions and answers is published in Field Assistance Bulletin No. 2012-02.
On October 20, 2010, the Department of Labor (DOL) published a final rule requiring the disclosure of information regarding the fees and expenses associated with 401(k) accounts and similar retirement plan accounts. This participant-level disclosure rule is meant to ensure that workers receive core investment information in a format that enables them to meaningfully compare their plan’s investment options.
A second and related fee transparency rule requires, in part, that certain covered service providers furnish specified information to plan administrators so that they in turn can comply with their disclosure obligations to participants. This second rule, published by the DOL on February 3, 2012, requires disclosures to employers sponsoring pension and 401(k) plans about the administrative and investment costs associated with providing such plans to their workers.
The guidance responds to frequently asked questions about these rules and is intended to assist covered service providers and plan administrators with implementation.
For More Information
To view Field Assistance Bulletin No. 2012-02, please click here. The EBSA press release is available by clicking here. For more information on the new rules, you may visit our section on Retirement Plan Fee Disclosure Rules.