Proposed Amendment To Service Provider Fee Disclosure Rules

Keywords: amendment, fee disclosure regulations, ERISA, covered service providers

On March 12, 2014, the US Department of Labor (DOL) proposed an amendment to its fee disclosure regulation under Section 408(b)(2) of the Employee Retirement Income Security Act of 1974, as amended (ERISA), to require Covered Service Providers (as defined below) to provide plan fiduciaries with a guide specifying the location of each of the required disclosures.

Background

On February 3, 2012, the DOL issued a final rule (the Final Rule) amending its longstanding regulations interpreting the statutory exemption for the provision of plan services under Section 408(b)(2) of ERISA. The Final Rule became effective on July 1, 2012 for all new and existing service provider relationships covered by the Final Rule. The Final Rule requires certain Covered Service Providers that provide services to ERISA-governed retirement plans to provide additional disclosures as a condition of obtaining