The Department of Labor is allowing defined contribution retirement plan administrators to reset the timing for annual fee disclosures to participants (see our earlier blog post reminding readers of the disclosure requirement and contemplating possible relief).
DOL has issued Field Assistance Bulletin 2013-02 announcing the temporary enforcement policy. The participant-level fee disclosure regulation, implemented last year, required administrators of 401(k)- and 403(b)-type plans to disclose information about plan investment options – including fees and investment performance information –to participants at least annually. Plans maintained on a calendar year basis were required make the first participant-level disclosures by August 30, 2012. Absent the relief provided by FAB 2013-02, plan administrators would be required to reissue updated versions of fee disclosures to participants by August 30, 2013 (or earlier, if the first fee disclosures were issued before August 30, 2012).
Under FAB 2013-02, plan administrators may reset the deadline one time, for either 2013 or 2014, if the plan fiduciary determines plan participants will benefit from doing so and provided no more than 18 months pass before participants receive the next disclosure.
The temporary enforcement policy does not change any other requirements for plan administrators.