HR pop quiz: 404(a)(5) fee disclosure rule

(Photo credit: Arvind Balaraman) (Photo credit: Arvind Balaraman)

Due to the extension of the effective date of the final “404(a)(5)” 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 what date?

 

 

A) July 30, 2012

B) Aug. 30, 2012

C) Sept. 30, 2012

D) Oct. 30, 2012

A) July 30, 2012

Incorrect. Try again!

B) Aug. 30, 2012

Correct!

On Feb. 2, the Department of Labor announced a three-month extension in the effective date of the 401(k) fee disclosure rule, meaning service providers must be in compliance by July 1, 2012, for new and existing contracts or arrangements between Employee Retirement Income Security Act-covered plans and service providers.

The effective date of the final rule announced today works in conjunction with the compliance date of the department’s participant-level disclosure regulation (29 Code of Federal Regulations 2550.404a-5) which requires 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 September) must be furnished no later than Nov. 14, 2012.

Plan sponsors and service providers with questions about the final rule can contact EBSA’s Office of Regulations and Interpretations at 202-693-8500. A fact sheet on this regulation is available on EBSA’s website at www.dol.gov/ebsa/newsroom/fs408b2finalreg.html.  Additional information about how the final rule announced today differs from the previously published interim final rule can be seen by visiting www.dol.gov/ebsa/408b2changes.html.

C) Sept. 30, 2012

Incorrect. Try again!

D) Oct. 30, 2012

Incorrect. Try again!

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