The DOL has recently announced that it will extend both the fiduciary and participant fee disclosure rules. The regulations under ERISA section 408(b)(2) are extended until April 1, 2012. Participant disclosure regulations are extended to no later than 60 days after a first day of the first plan year beginning on or after November 1, 2011, or 60 days after the effective date of the fiduciary-level fee disclosure rule (i.e., 60 days after April, 1, 2012, which is May 31, 2012).
408(b)(2) will require plan service providers (such as record keepers and broker-dealers) to fully describe their services, disclose sources of compensation and to identify its fiduciary status to their plan sponsor clients. DOL is also providing more time to comply with the plan fee disclosures to employees.
The DOL’s Phyllis C. Borzi said, “We want employers and workers to benefit from the increased transparency provided by these rules as soon as possible.” Additionally, she stated, “We also appreciate that service providers may need more time for compliance efforts…”