Disclosure Rules: DOL Extends Applicability Date
The DOL’s Employee Benefits Security Administration says it will extend the applicability date for the new disclosure rules under section 408(b) of the Employee Retirement Income Security Act.
The department published an interim-final regulation in July 2010, requiring certain service providers to employee pension benefits to disclose direct and indirect fees charged for services. This information is needed by plan fiduciaries to detect conflicts of interest and to assess the reasonableness of any contracts they sign with providers. The new requirements had been scheduled to apply to plan contracts or arrangements for services in existence on or after July 16, 2011.
The department intended to have final rules in place sufficiently in advance of the July 16 date, but now says it needs more time to fully review all of the valuable input received on the interim final rule. An extension of the applicability date to Jan. 1, 2012 will ensure that we get the final rule right and that plans and their service providers have the time to undertake orderly and efficient compliance efforts following publication of the final rule.
Related program: Learn more about disclosure and other HR issues at CBIA’s 2011 Compensation and Benefits Conference on March 24 in Cromwell. Details
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