The U.S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) announced last week the postponement of two new regulations that are intended to reduce costs and assign fiduciary responsibilities in 401k plans.
The EBSA announced that it is amending the effective date of Service Provider Fee Disclosure Requirements under Employee Retirement Income Security Act (ERISA) § 408(b)(2) to April 1, 2012. This is the regulation that requires all plan providers who receive compensation greater than $1,000 to provide reports to the plan sponsor indicating the amount of compensation, the services provided and whether or not the provider is serving as a plan fiduciary.
In addition, the deadline for meeting participant-level disclosure under ERISA 404(a) has been extended to 60 days after the effective date of the 408(b)(2) requirements. The new deadline for issuing the initial participant-level disclosure is May 31, 2012. This is the regulation that requires the plan sponsor to disclose to each of the participants the total cost they are incurring as a participant as well as a report on the performance of the investments relative to their respective benchmarks.
MCB has teamed with Piedmont Independent Fiduciaries to inform our employee benefit plan clients of new 401k plan regulations. Piedmont Independent Fiduciaries provides investment management and fiduciary risk management to 401(k) plan participants and sponsors. For more information, please contact Kevin O’Neil at firstname.lastname@example.org