Let’s face it. You like to be prepared when it comes to your finances. So do participants of your benefit plans. That need for preparation is what has driven the recent changes in regards to fee disclosure. As a plan sponsor, you need to comply with these new requirements. Are you sure you’re keeping up with your role in the process? (more…)
Posts Tagged ‘fee disclosure’
Does your 401k plan have a calendar year end? If so you have until December 1, 2012, to send notice requirements to plan participants or the operation or qualification of your plan could be impacted. Use this checklist of notices to get started: (more…)
It’s Your Turn to Disclose Fees to Participants
Did you suffer from sticker shock when you received the recent fee disclosures from your service providers? If so, you weren’t the only plan fiduciary to be surprised, even though it’s your job to know the ins and outs of your pension plan.
Now, by August 30, you have to disclose that fee information to your plan participants. How do you think they will react? It is possible they aren’t going to like the news. Worse yet, they may be confused as to why they are suddenly paying new fees when the reality is they have always paid them. Being upfront about plan costs, and plan benefits, can help you make it through this new disclosure requirement. (more…)
408(b)(2) Regulations Help Meet Fiduciary Responsibilities
Are you wondering why there is so much buzz these days about ERISA Section 408(b)(2) fee disclosures? After all, your service provider tells you what you pay for the services provided, right? Maybe.
Service provider pricing and compensation can be structured many different ways, so it may prove difficult for you, a responsible plan fiduciary (RPF), to evaluate plan fees. The Department of Labor (DOL) recognizes this and, in 408(b)(2) regulations, is mandating what information is to be disclosed to help you assess the reasonableness of fees paid for by the plan. The regulations also aim to help identify conflicts of interest that may impact a service provider’s performance. (more…)