Retirement Plan Disclosure Rules in Effect on July 1
Posted February 10, 2012
The Department of Labor (DOL) recently issued final rules that make the fees associated with retirement plans more transparent. The Employee Benefit Security Administration (EBSA) will start enforcing the new rules at the plan and participant levels on July 1, 2012, and August 30, 2012, respectively.
Under the new policy, record keepers, investment advisors, accountants, lawyers, and other service providers of ERISA-covered retirement plans must disclose specific information to the benefit plan fiduciary, if the service provider expects to receive $1,000 or more in compensation. The disclosures must be made in writing, and it is suggested (but not required) that service providers offer a guide or summary of the disclosures.
The EBSA issued the interim final regulation in 2010 and the original compliance deadline was in 2011, but it has been extended numerous times to give providers more time to comply.
"Businesses should take steps now to prepare for the new regulations, so they can avoid being charged excise taxes," says Anita Baker, employee benefit plans managing partner at CliftonLarsonAllen. "Now that the new rules have been released, the effective date will likely not be extended again."
Read the full web story to learn about:
- Changes between the interim and final regulation
- Ways to prepare for the changes
- How we can help
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