Today the Dept. of Labor issued the long-awaited Final Rule on Reasonable Contract or Arrangement Under Section 408(b)(2) – Fee Disclosure, also known as the Final Final 408(b)(2) Fee Disclosure Regs.
Last year, the DOL issued Interim Final Regs on Section 408(b)(2) Fee Disclosure. These regulations were to take effect April 12, 2012. They also stated that the DOL would be issuing additional final regulations on fee disclosures before April 12, 2012, which became known as the anticipated Final Final 408(b)(2) Fee Disclosure Regs. The regulations issued today by the DOL are those additional Final Regs. As anticipated, the Final Final 408(b)(2) extend the effective date from April 12, 2012 to July 1, 2012.
In a press release, the DOL states that the effective date is designed to work
“in conjunction with the compliance date of the DOL’s participant-level disclosure regulations (Labor Reg. 2550.404a-5) which require plan administrators to give workers who direct their retirement accounts in 401(k)-type plans easy-to-understand information in order to comparison shop among the plan investment options available to them. Due to the extension of the effective date of the final rule, plan administrators for calendar year plans now must make the initial annual disclosure of “plan-level” and “investment-level” information (including associated fees and expenses) to participants no later than Aug. 30, 2012, and the first quarterly statement (for fees incurred July through Sept.) must be furnished no later than Nov. 14, 2012.”
The DOL also released a short summary of how the Final Regs released today differ from the Interim Final Regs issued on July 16, 2010.
The regs are 109 pages long.