It looks like the Department of Labor (DOL) will give employers some relief when it comes to complying with its new retirement plan fee disclosure rules.
The effective date for sponsors to disclose all fees and expenses to participants of 401(k)-type plans will remain Jan. 1, 2012 for calendar-year plans.
But the DOL just issued a notice of its proposal to extend the applicability date of the fee disclosure rules in order to give plan sponsors more time to comply with the requirements.
Under the proposal, employers will have 120 days after the effective date to make their first disclosure of fee and expense information to plan participants. So calendar-year plans would have to issue the initial disclosures no later than April 30, 2012.
Originally, employers would’ve had only 60 days after Jan. 1, 2012 to issue the first disclosures.
The notice says plan sponsors can comment on the proposed changes. However, the changes are expected to be adopted as proposed.
The deadline for comments is June 15, 2011.
Info: For more details of what’s required under the new fee disclosure rules, check out our breakdown here.
