Plan Sponsor Fee Disclosures 408(b)(2)
U.S. government officials have been focused on the need for greater fee transparency in the 401(k) plan market for more than a decade.
The 408(b)(2) disclosure rules issued by the U.S. Department of Labor (DOL), and made effective July 1, 2012
They require all covered service providers to automatically provide comprehensive compensation disclosures to their plan sponsor clients. The 408(b)(2) rules, and the related fiduciary requirements under ERISA, impose duties on the plan sponsor in the event the required disclosures are defective or are not provided, effectively forcing the plan sponsor to monitor and police the disclosure efforts of the plan’s various providers.