DOL Extends Fee Disclosure Effective Dates
The Department of Labor has extended the effective dates of both 408(b)(2) sponsor disclosures and 404a participant fee disclosures.
408(b)(2) sponsor disclosures
When the DOL initially released its interim final rules for 408(b)(2) rules, the effective date was July 16, 2011. The newly amended rule pushes the effective date back to April 12, 2012.
This change means covered service providers must provide initial disclosures on or before April 1, 2012. In addition, covered service providers must provide initial disclosures with regard to an arrangement with a covered plan entered into, extended, or renewed after April 1, 2012 within a reasonable time prior to entering into, extending, or renewing the arrangement.
404a participant fee disclosures
The 404(a)(2) final rules apply for plan years beginning after October 31, 2011. The newly amended rule means the deadline for plan administrators of covered plans to provide the annual plan, expense, or investment disclosures to participants is now 60 days after the later of:
1. The effective date of the 408(b)(2) regulations (April 1, 2012), or
2. The date the regulations apply.
For calendar year plans, the deadlines would be:
• Initial annual disclosure must be delivered by May 31, 2012.
• The first quarterly statement requirement (i.e., showing actual fees charged for the preceding quarter) deadline is August 14, 2012. In practical terms, this means the first statement that must include these fees is the June 30, 2012, quarterly statement.
Additional information about the fee disclosure regulations is available on the EBSA website at http://www.dol.gov/ebsa and the Final Rule on Extension and Alignment of Applicability Dates for Retirement Plan Fee Disclosure Rules.