Labor extends compliance date for 401(k) fee disclosure

The Department of Labor’s Employee Benefits Security Administration has extended the deadline for 401(k) plans to disclose fees and expenses to participants to 120 days after the Jan. 1, 2012 deadline. Originally, the deadline was 60 days after the effective date. As a result, plans now have until April 30, 2012 to provide the information.

This amendment will ensure that employers obtain the information they need from service providers in order to satisfy their disclosure obligations to their workers, the DOL said.

“We want employers and workers to benefit from the increased transparency provided by these rules as soon as possible,” said Phyllis C. Borzi, assistant labor secretary for employee benefits security. “But we also appreciate that service providers may need more time for compliance efforts, because they have not yet seen a final Employee Retirement Income Security Act Section 408(b)(2) regulation. This action will provide that plan fiduciaries have all required information from service providers before they must disclose information to their workers, ensuring that workers receive accurate information about their retirement plan and investment costs.”

—Lee Barney writes for Money Management Executive, a SourceMedia publication