June 14, 2012
July 1 is the deadline by which certain providers of services to ERISA-covered
retirement plans must provide fee and other information to these plans under a
new Department of Labor (DOL) disclosure requirement. The disclosure is
necessary to the extent that the service provider, its affiliates or its
subcontractors are compensated from assets of the plan.
If a covered service provider under an existing services arrangement with a
plan does not comply with the disclosure requirement by July 1, the plan
fiduciary responsible for hiring and monitoring that service provider must take
specific actions, which may include notifying the DOL of the noncompliance
and/or terminating the services arrangement.
For further information, please see our earlier article,
A Plan
Fiduciary’s Guide to the Service Provider Disclosure Rules. In addition, the
DOL has released some limited guidance concerning these rules in
Field Assistance Bulletin
No. 2012-02 and has indicated that more guidance will be published before
the July 1 deadline.
For additional information, please contact any member of the McGuireWoods
Employee
Benefits and Executive Compensation group.