DOL finalizes regulation on disclosure of fee information by retirement plan service providers and delays effective date by three months
The Department of Labor ("DOL") has released its long-awaited final regulation imposing disclosure requirements on service providers to employer-sponsored retirement plans. The disclosure requirements are established as part of a statutory exemption from ERISA's prohibited transaction rules and include a class exemption for plan fiduciaries that enter into service contracts without knowing that the covered service provider has failed to comply with its disclosure requirements. To allow more time for covered service providers to respond to the changes made by the final regulation, the effective date has been delayed for three months to July 1, 2012. The new disclosure requirements apply both to existing and new contracts and arrangements.