Services | ERISA 408(b)(2) Disclosure Management

Plan sponsors are facing heightened expectations and legal responsibilities in the wake of new Department of Labor regulations.

Effective July 1, 2012, ERISA §408(b)(2) requires all covered service providers make written disclosure of the services provided and the compensation received for those services to the responsible plan fiduciary (usually the plan sponsor or a plan committee) of a covered plan.

The responsible plan fiduciary is responsible for knowing whether it received the required disclosures as of the deadline and for evaluating the disclosed information to determine if the applicable contract or arrangement and associated compensation is “reasonable and necessary” in light of services provided.

The standard of care under ERISA Section 404 requires plan sponsors to evaluate the reasonableness of plan fees with the skill and knowledge of a de facto prudent expert who is familiar with the service fees in the retirement industry. Most plan sponsors, however, don’t typically have the necessary expertise and resources to make this determination.

Confident Compliance

Atéssa’s team of experts can help you fulfill your fiduciary obligations and confidently comply with new fee disclosure regulations.

Our ERISA 408(b)(2) disclosure management services include:

  • Collection of service provider disclosures for Form 5500 Schedule C AND 408(b)(2)
  • Contacting covered service providers as required for missing disclosures, errors or omissions, or non-cooperation
  • Reporting delinquent service providers to the Department or Labor
  • Evaluation of covered service provider disclosures
  • Fee, performance, and services benchmarking
  • Service provider fee negotiation
  • Managing the Request for Proposal process
  • Process documentation
  • Assessment of current fiduciary practices against global best practices
  • Exploring options to reduce costs and streamline administration for your organization

Atéssa in the News

Experts Advise 401k Plan Sponsors on 408(b)(2) Fee Disclosure Template
http://fiduciarynews.com/2012/07/experts-advise-401k-plan-sponsors-on-408b2-fee-disclosure-template/

Industry Resources

Online Fee Disclosure Failure Notice to EBSA
U.S. Department of Labor
Employee Benefits Security Administration
http://www.dol.gov/ebsa/regs/feedisclosurefailurenotice.html

Model Fee Disclosure Failure Notice
U.S. Department of Labor
Employee Benefits Security Administration
http://www.dol.gov/ebsa/DelinquentServiceProviderDisclosureNotice.doc

FAQs:  Fee Disclosure
U.S. Department of Labor
Employee Benefits Security Administration
Field Assistance Bulletin No. 2012-02
May 7, 2012
http://www.dol.gov/ebsa/regs/fab2012-2.html

Full Text of the Rule and Class Exemption:  Reasonable Contract or Arrangement Under Section 408(b)(2) – Fee Disclosure
U.S. Department of Labor
Employee Benefits Security Administration
February 3, 2012
http://webapps.dol.gov/FederalRegister/PdfDisplay.aspx?DocId=25781

408(b)(2) Technical Appendix
U.S. Department of Labor
Employee Benefits Security Administration
http://www.dol.gov/ebsa/pdf/408b2techapp.pdf

Fact Sheet:  Final Regulation Relating to Service Provider Disclosures Under Section 408(b)(2)
U.S. Department of Labor
Employee Benefits Security Administration
February 2012
http://www.dol.gov/ebsa/newsroom/fs408b2finalreg.html

Changes to Final Fee Disclosure Rule
U.S. Department of Labor
Employee Benefits Security Administration
February 2012
http://www.dol.gov/ebsa/408b2changes.html

Meeting Your Fiduciary Responsibilities
U.S. Department of Labor
Employee Benefits Security Administration
http://www.dol.gov/ebsa/publications/fiduciaryresponsibility.html

Amendment to 408(b)(2) Regulation
Revises mailing address and web-based submission procedures for filing notices with the DOL
Effective September 14, 2012
U.S. Department of Labor
Employee Benefits Security Administration
http://www.gpo.gov/fdsys/pkg/FR-2012-07-16/pdf/2012-17013.pdf