The U.S. Department of Labor's Employee Benefits Security Administration announced new procedures for plan sponsors who wish to obtain fiduciary relief for a service provider's failure to comply with the department's plan-level fee disclosure rule.
The final 408(b)(2) regulation, which went into effect July 1, included a provision to protect plan sponsors or other responsible plan fiduciaries from liability for a breach of their fiduciary duties under the Employee Retirement Income Security Act of 1974 when their service provider fails to comply with the regulation's fee disclosure requirements.
The plan sponsor must notify the department if they do not receive the required disclosures, if their efforts to attain the information are not successful.
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Plan sponsors can submit their complaint electronically or by mail. The DOL set up a dedicated P.O. box for these types of communication at DOL, EBSA, Office of Enforcement, P.O. Box 75296, Washington, D.C., 20013, and a web-based tool at www.dol.gov/ebsa/regs/feedisclosurefailurenotice.html that will assist plan sponsors in ensuring that all required information is submitted and providing immediate confirmation that notices have been received by the department.
"These revised submission procedures will help plan sponsors who, through no fault of their own, do not receive the disclosures promised to them by the 408(b)(2) regulation. When efforts to resolve the disclosure failure with their service provider are ineffective, plan sponsors will be able to take advantage of an easy-to-use, online tool that will guide them through the information that must be submitted to the department and provide immediate confirmation that their notice has been received. Of course, plan sponsors who wish to submit a paper notice may continue to do so," said Assistant Secretary of Labor for EBSA Phyllis C. Borzi. "Department staff also will be able to more efficiently receive, process, and review these notices, which will in turn benefit the plan sponsors who seek relief."
Parties that wish to comment on the direct final amendment to the regulation may do so by Aug. 15. If significant adverse comment is not received by that date, the revised procedures will go into effect on Sept. 14.
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