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Proposed Regulation to Expand 408(b)(2) Requirements

The Department of Labor (DOL) has put forth an amendment to the Covered Service Provider fee disclosure requirements that became effective in 2012. The amendment is intended to help plan sponsors decipher the numerous and lengthy documents containing information about the fees their plans are paying to service providers. The amendment is currently in the comment period, which allows groups or entities to provide feedback to the DOL regarding the need for the amendment, the cost to produce the additional information, and other relevant topics.

The rule will not become effective until 12 months after its final publication, likely sometime in 2015. This amendment is not a surprise since the original regulation left a gap for exactly this type of additional language. 

What will the new regulation require? Quite simply, it is a guide to where certain important information is located within the disclosure documents. Plan sponsors will be directed to a page or section where required information can be found to make it easier to determine if the disclosure requirements are being met.

The required information the guide is meant to help locate includes: 
Description of services,
Identification of registered investment advisers or fiduciary services,
Description of compensation arrangements and types of compensation, and
Annual operating expenses, ongoing expenses, or total operating expenses, where applicable.

CAPTRUST provides you with the required fee disclosures through its Retirement Plan Service Agreement along with appended schedules, where applicable. If you have questions about any of the fee disclosure documents that you have received from CAPTRUST or any another service provider, we would be happy to assist you.