A) 15 days

B) 30 days

C) 60 days

D) 90 days

A) 15 days

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B) 30 days

Correct!

According to the Department of Labor, in order for a service contract or arrangement with a retirement plan to be reasonable, covered service providers must disclose certain information about the services they will provide to the plan and the compensation they will receive, including indirect compensation from sources other than the plan. This information is needed in order for the responsible plan fiduciary (the fiduciary with the authority to cause the plan to enter into, extend or renew the service provider contract or arrangement) to understand the services, assess the reasonableness of the compensation (direct and indirect) received by the service providers, and identify any conflicts of interest that may impact the service provider's performance.

If a service provider fails to provide the required information, the contract or arrangement between the plan and the service provider is prohibited by ERISA, and the responsible plan fiduciary will have engaged in a prohibited transaction.

Among other things, the responsible plan fiduciary must request the missing information from the service provider in writing and, if that fails, notify EBSA within 30 days of certain events.

There is a class exemption that provides relief for fiduciaries who did not know that the service provider had failed to disclose some of the required information. To get the relief provided by the exemption, the responsible plan fiduciary must meet the conditions that are listed here.

If the covered service provider fails to comply with a written request from the fiduciary within 90 days, the fiduciary must notify the DOL with a notice that contains the following:

1. The name of the covered plan;
2. The plan number used for the covered plan's Annual Report;
3. The plan sponsor's name, address, and Employer Identification Number or EIN;
4. The name, address, and telephone number of the responsible plan fiduciary;
5. The name, address, phone number, and, if known, EIN of the covered service provider;
6. A description of the services provided to the covered plan;
7. A description of the information that the covered service provider failed to disclose;
8. The date on which such information was requested in writing from the covered service provider; and
9. A statement as to whether the covered service provider continues to provide services to the plan;

C) 60 days

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D) 90 days

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