ERIC News Release
For Immediate Release: July 22, 2013
Washington, D.C. – The ERISA Industry Committee (ERIC) applauds the Department of Labor (DOL) for providing temporary enforcement relief with respect to the fee disclosure requirements for participant-directed individual account plans under the Employee Retirement Income Security Act.
The Department of Labor’s Enforcement Division earlier today released Field Assistance Bulletin 2013-02 (FAB 2013-02), which allows 401(k)-type plans to reset the timing for the annual distribution of the investment comparative chart plan sponsors are required to furnish to plan participants.
“We appreciate the DOL for recognizing the administrative burden and additional cost that the existing deadline for furnishing the comparative chart plan would have placed on plan sponsors,” said ERIC Senior Vice President for Retirement Policy Kathryn Ricard. “As most plans operate on a calendar year basis, we believe it makes much more sense to permit plan sponsors to distribute these participant fee disclosures with other year-end disclosure requirements,” Ricard added.
ERIC sent a letter to the DOL on June 3, 2013, highlighting the timing issues after the first year of compliance in 2012, and asked for guidance similar to what is contained in FAB 2013-02.
FAB 2013-02 states that the Department of Labor’s Employee Benefits Security Administration (EBSA) division, as an enforcement matter, will treat a plan administrator as satisfying the “at least annually thereafter” requirement of the regulation if he/she furnishes the “2013 comparative chart” no later than 18 months after the prior comparative chart was furnished.
For those administrators who have taken steps to comply with the 2013 disclosure requirement, FAB 2013-02 states that they may furnish the “2014 comparative chart” no later than 18 months after furnishing the prior comparative chart in compliance with the regulation.
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The ERISA Industry Committee (ERIC) is a non-profit association committed to representing the advancement of the employee retirement, health, and compensation plans of America's largest employers. ERIC's members provide benchmark retirement, health care coverage, compensation, and other economic security benefits directly to tens of millions of active and retired workers and their families. ERIC has a strong interest in proposals affecting its members' ability to deliver those benefits, their cost and their effectiveness, as well as the role of those benefits in the American economy.