Alert July 19, 2011

DOL Extends Effective Dates for New Service Provider and Participant-Level Retirement Plan Fee Disclosure Requirements

The Department of Labor (the “DOL”) issued a final rule (the “Extension”) finalizing its recently announced intention to further extend from January 1, 2012 to April 1, 2012 the effective date for the interim final regulation under Section 408(b)(2) of ERISA that would require enhanced disclosure from certain pension plan service providers to plan fiduciaries.  The interim final regulation was discussed in the August 3, 2010 Financial Services Alert.  The DOL indicated that it expects to issue the final Section 408(b)(2) regulation before the end of 2011.

The Extension also amends the DOL’s participant‑level fee disclosure regulations (discussed in the November 2, 2010 Financial Services Alert) to extend the deadline for certain retirement plans with participant-directed investments to disclose specified plan fee, expense and other information to participants to the later of (i) 60 days following the date the new Section 408(b)(2) requirements become effective, or (ii) 60 days after the first day of the first plan year of the plan beginning after November 1, 2011 (e.g., May 31, 2012 for a calendar year plan).