It has always been important to us to provide our clients with complete fee transparency and disclosure. Our easy-to-understand fee structure helps business owners assess the total administration cost of sponsoring a qualified retirement plan while making sure that the fees are reasonable for plan participants.
On February 2, 2012, the Department of Labor (DOL) published final rules regarding service provider fee disclosures. The final rules specify fee disclosure obligations for plan service providers designed to ensure that plan fiduciaries can accurately analyze the fees charged when selecting and monitoring service providers for their qualified retirement plans. The final rules are effective July 1, 2012. In
addition, initial disclosures under the participant-level
disclosure regulations must be provided to plan
participants no later than 60 days after the
effective date of the final rules,
or August 30, 2012.
While the service provider must make the disclosures under the service provider fee disclosure rules, the liability for non-compliance with the rules falls on the
plan fiduciary (which is usually the employer). Therefore, plan sponsors must be aware of the final rules and must review all service contracts (new and existing) prior to the compliance deadline.