Perhaps after reading too many voluminous, jargon-filled fee disclosure agreements, the Department of Labor became fed up and decided to take action. On March 12, the DOL issued a proposed rule (the Proposed Rule) that would amend its final service provider fee disclosure regulation (the Final Rule) under ERISA Section 408(b)(2).
The Proposed Rule will require covered service providers to pension plans (including 401(k) plans) to provide a guide to assist plan fiduciaries in reviewing disclosures required by the Final Rule where such disclosures are contained in multiple or lengthy documents. The Proposed Rule will not require covered service providers to provide this new guide if they already furnish the required initial disclosures to plan fiduciaries in a concise, single document. The guide will have to identify the specific page number, section or specific location of documents containing important information about the service providers relationship to the plan, including information about compensation, fees and the services provided.
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