DOL Proposes Amendment To Service Provider Fee Disclosure Regulation

Proposal would require certain service providers to furnish a separate disclosure guide.

On March 11, the U.S. Department of Labor (DOL) issued a proposed amendment to its 2012 final regulations under section 408(b)(2) of the Employee Retirement Income Security Act of 1974 (ERISA), which require certain service providers to pension plans to disclose information about their services and compensation to plan fiduciaries.¹ The proposed amendment would require these service providers to furnish plan fiduciaries with a guide if the disclosures are contained in multiple or "lengthy" documents. The DOL has requested comments on the proposal by June 10, 2014. Service providers should consider reviewing their current fee disclosures to determine whether any changes would be required should the proposed rule be finalized and should consider whether to provide any comments on the proposal to the DOL.