ERIC Urges DOL to Clarify 401(k) Fee Disclosure Guidance

The ERISA Industry Committee (ERIC), along with the Plan Sponsor Council of America (PSCA), and the U.S. Chamber of Commerce (the Chamber) today urged the Department of Labor (DOL) to clarify its previous guidance providing relief with respect to the fee disclosure requirements for participant-directed individual account plans (such as 401(k) plans).

The DOL on July 22 released Field Assistance Bulletin 2013-02 (FAB) allowing 401(k)-type plans to reset the timing for the annual fee disclosures plan sponsors are required to furnish to plan participants.

While the body of the FAB references the “comparative chart,” the group believes the FAB provides a one-time extension for all of the regulation’s annual disclosures and not just the comparative chart. ERIC, PSCA, and the Chamber’s letter asks the DOL to confirm that the guidance applies to all of the requirements under the regulations.

ERIC, PSCA, and the Chamber also request that the DOL issue guidance to confirm that plan administrators who delay the annual fee disclosures can still rely on the fiduciary safe harbor under the regulation.

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For a copy of the comment letter, click here.