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Participant Fee Disclosure 404(a)(5)

Plan sponsors are subject to participant-level disclosure rules issued by the U.S. Department of Labor (the “DOL”)

Under these rules, beginning in 2012, employers sponsoring 401(k)-style plans must deliver certain disclosures (the “404a-5 Disclosures”) to plan participants in accordance with Section 2550.404a-5 of the DOL regulations (the “404a-5 Regulations”).  

The 404a-5 Disclosures include both annual disclosures and quarterly fee disclosures

Plan sponsors and other fiduciaries must carry out their duties under the plan prudently and solely in the interest of the plan’s participants in accordance with the Employee Retirement Income Security Act (ERISA) of 1974 and subsequent legislative / regulatory changes. These duties are sometimes referred to as the fiduciary duties of “prudence” and “loyalty.” In the case of a plan that allocates investment responsibilities to its participants (participant directed plan), the

plan sponsor’s duties include a duty to deliver Annual Disclosures and Quarterly Fee Disclosures to participants.

Angie Darby