SunGard Relius has posted FAQ IX in its series on the new fee disclosure regulations announced by the Department of Labor in October 2010. Part IX addresses ERISA 404(c) changes by answering the following questions. Click
here to read the answers to these questions.
- What is 404(c)?
- What must happen for a plan fiduciary to have the benefit of 404(c) protection?
- How will the participant disclosure regulations change the 404(c) information requirements?
- How does the information the new 404(a) regulations require compare with the information required by the existing 404(c) regulations?
- A plan can choose to operate without 404(c) protection. In that case, the plan could avoid the 404(c) requirements. Will the same choice apply to the new 404(a) information requirements?
- Does 404(c) protection apply to a fiduciary's selection of designated investment alternatives which the plan will make available to participants, or to the selection of service providers?
NOTE: On February 11, 2011, the US Department of Labor's Employee Benefits Security Administration
announced that it "intends to extend the applicability date for the new disclosure rules under section 408(b)(2) of ERISA to January 1, 2012".
Please
contact us with questions about our service provider fee disclosure practices or with questions on participant fee disclosure requirements.