DOL Extends Compliance Deadlines for Service Provider and Participant-Level Fee Disclosures

On February 3, 2012, the Department of Labor (“DOL”) published final regulations under Section 408(b)(2) of ERISA requiring certain retirement plan service providers to disclose fee-related information to plan fiduciaries in order to ensure compliance with the “reasonableness” standard of the Section 408(b)(2) prohibited transaction exemption for contracts necessary for the establishment and operation of the plan.  The final regulations make minor changes to the interim final rule that was published on July 16, 2010, and delay the compliance date for these new disclosure requirements from April 1 to July 1, 2012. 

Consequently, the compliance date for the initial participant-level fee disclosures that plan administrators must send participants in self-directed individual account plans, pursuant to the DOL’s final regulations under Section 404(a) of ERISA, which are required by the later of 60 days after the effective date of the final service provider fee disclosure regulations or 60 days after the first plan year beginning on or after November 1, 2011, has been extended until August 30, 2012 for any plan with a plan year beginning on or before July 1, 2012.