Beginning later this year, plan administrators will be required to provide workers who make their own investment decisions in 401(k)-type retirement plans with certain information about plan and investment costs, including quarterly statements showing the dollar amount of plan-related fees and expenses charged to or deducted from their individual accounts.
The effective date for this new requirement works in conjunction with the compliance date for another rule requiring fee disclosures by certain service providers to plans, which was recently delayed. As a result of this delay, plan administrators for calendar year plans now must make the initial annual disclosure of plan and investment – related information (including associated fees and expenses) to participants in 401(k)-type plans no later than Aug. 30, 2012, and the first quarterly statement (for fees incurred July through September) must be furnished no later than Nov. 14, 2012.
Note: The plan administrator is a person specifically designated by the terms of the plan that is responsible for the management of the plan. If the plan does not make such a designation, then the plan sponsor (typically the employer) is generally the plan administrator.
For More Information
Additional details regarding the new retirement plan fee disclosure requirements are available by clicking on the links below. For more information on the responsibilities associated with administering a retirement plan, please visit our section on the Employee Retirement Income Security Act.