The U.S. Department of Labor has
Although the deadlines have been pushed back to April 1, 2012, employers should be preparing now to ensure that they are ready to comply with the new requirements.
Under
Disclosures include information regarding the nature of the services to be provided, the extent to which the service provider is acting as a fiduciary, and the amount and type of compensation the service provider will receive. A fiduciary that fails to consider the new information disclosures will cause the retirement plan to engage in an ERISA prohibited transaction.
Under
The information to be disclosed includes general plan information (e.g., direction as to how to provide investment instructions), information about plan expenses charged to participant accounts, and detailed information about plan investment alternatives. The new regulations require detailed disclosure on an annual basis and, in the case of plan expense information, on a quarterly basis. A fiduciary’s failure to satisfy the new disclosure obligation could result in a breach of fiduciary duty under ERISA.
The new obligations demand that the following steps be taken:
- Provide training to plan fiduciaries, including investment committees, on new fiduciary obligations
- Contact plan service providers about information to be provided
- Update recordkeeping and communication systems to satisfy the quarterly disclosure requirements
- Review and evaluate information disclosures
- Make and carry out fiduciary decisions
If you have questions or concerns, contact