In an effort to increase fee transparency in benefit plans, the
U.S. Department of Labor (DOL) has issued two new regulations that
require certain disclosures be provided to plan sponsors and plan
participants. These disclosures are intended to provide both
plan sponsors and plan participants with information regarding the
fees charged in their retirement plans.
We recommend that plan sponsors contact their service providers
to ensure that these disclosures are made within the required
deadlines. Plan sponsors should retain the written
disclosures that are provided to them under Section 408(b)(2) as
evidence that they are in compliance with regulation.
Similarly, support should be retained in the files to substantiate
that participants were provided the appropriate annual and
quarterly disclosures.
