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Department of Labor Releases Final Fee Disclosure Regulations
The Department of Labor has now released the final version of the interim regulations concerning fee disclosure requirments for retirement plans.
The new regulations apply to all Qualified Plans subject to ERISA, including Pension, Profit Sharing, 401(k), and 403(b) plans. The new rules do not apply to IRA-based retirement plans, such as SIMPLE IRA and SEP plans.
The disclosure requirments apply to all Covered Service Providers as defined in the regulations, requiring these providers to distribute specific information concerning the fees and expenses charged to the plans, as well as descriptions of the services provided for those fees, and a declaration of the providers status as a fiduciary.
The initial disclosures will require providers to distribute plan-level disclosures to Plan Sponsors by July 1, 2012. Plan Sponsors, as plan Fiduciaries, will then be responsible for understanding these fees and determining that they are reasonable.
The second level of disclosures will be required sixty days later, by August 30, 2012, requiring Plan Sponsors to disclose specific information from providers to their plans' particpants. The regulations have provided a sample format for these disclosures to participants, and information must be disclosed by the Plan Sponsor at least annually. Specific fee information must also be disclosed on participants' account statements, and the initial disclosures on quarterly statements must be provided by November 14, 2012, covering account information for the third quarter of the calendar year.
Please contact CBA with any questions about these new requirements as the fee disclosure process continues.
The new regulations apply to all Qualified Plans subject to ERISA, including Pension, Profit Sharing, 401(k), and 403(b) plans. The new rules do not apply to IRA-based retirement plans, such as SIMPLE IRA and SEP plans.
The disclosure requirments apply to all Covered Service Providers as defined in the regulations, requiring these providers to distribute specific information concerning the fees and expenses charged to the plans, as well as descriptions of the services provided for those fees, and a declaration of the providers status as a fiduciary.
The initial disclosures will require providers to distribute plan-level disclosures to Plan Sponsors by July 1, 2012. Plan Sponsors, as plan Fiduciaries, will then be responsible for understanding these fees and determining that they are reasonable.
The second level of disclosures will be required sixty days later, by August 30, 2012, requiring Plan Sponsors to disclose specific information from providers to their plans' particpants. The regulations have provided a sample format for these disclosures to participants, and information must be disclosed by the Plan Sponsor at least annually. Specific fee information must also be disclosed on participants' account statements, and the initial disclosures on quarterly statements must be provided by November 14, 2012, covering account information for the third quarter of the calendar year.
Please contact CBA with any questions about these new requirements as the fee disclosure process continues.
IRS Releases New Retirement Plan Dollar Limits for 2012
The IRS recently released the new annual dollar limitations for retirement plans for the 2012 plan year.
These amounts are indexed for cost-of-living adjustments each year, and this increase for 2012 represents the first change in these annual limits since 2009.
For a summary of the new annual limits that apply to Defined Contribution retirement plans for 2012, click the following link:
These amounts are indexed for cost-of-living adjustments each year, and this increase for 2012 represents the first change in these annual limits since 2009.
For a summary of the new annual limits that apply to Defined Contribution retirement plans for 2012, click the following link:
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