Department of Labor Announces Proposed Changes to Disclosure RegulationsNews | March 11, 2014
The Department of Labor (DOL) has issued a proposed amendment to the ERISA Section 408(b)-2 regulations. ERISA Section 408(b)-2 requires service providers to disclose fee, investment and service information to ERISA plan fiduciaries. The proposal would require any service provider disclosure that exceeded a certain length or was contained in multiple documents to include a new separate “guide” pointing plan fiduciaries to the document and page or section where the applicable information is located. The announcement from the DOL also includes a proposal that service providers be required to provide this guide annually in certain circumstances.
Retirement plan sponsors should be aware of two things with regard to this proposal:
This is just a proposal; the DOL is asking for comments and nothing will be effective until 12 months after a final rule is published.
This proposal does not impact the disclosures plan fiduciaries must send to participants annually.
If you have any questions about the proposal, please contact an attorney in the National Employee Benefits Group. Click here to see the DOL announcement.