DOL Delays Effective Date of Service Provider Fee Disclosure Regulations
February 14, 2011
The Department of Labor (DOL), last week, delayed the effective date of the service provider fee disclosure regulations from July 16, 2011 to Jan. 1, 2012. The regulations, under ERISA section the 408(b)(2), are intended to make it easier for plan fiduciaries to assess the reasonableness of the compensation paid for services and to highlight potential conflicts of interest that may affect a provider’s performance.
According to a statement released by the DOL, the review process of the interim final rules took longer than expected, and the extension of the effective date will give the department additional time to get the final rules published correctly; and it will give plans and their service providers adequate time to comply with the new rules.