Publications

Tips on Complying with U.S. Department of Labor Fee Disclosure Rules

Summer 2008
Human Resources 2008 Summer Edition

A proliferation of class action suits against employee benefit plan sponsors and administrators in late 2006 over allegedly excessive fees imposed on 401(k) (ERISA) retirement accounts and plan administrators’ alleged failure to disclose those fees to participants caused the U.S. Department of Labor (DOL) to take a closer look at service provider fees and fee disclosure. The DOL undertook a fee-transparency initiative, including revisions to Form 5500, amendments to the regulations promulgated under ERISA's statutory prohibited transaction exemption, and revision of ERISA 404(c) rules. By the end of 2007, it had completed a final revision to Schedule C of Form 5500 and proposed amendments to ERISA Section 408(b)(2). This chapter from Human Resources 2008 (summer edition) details the Schedule C revisions and proposed regulations.