Participant Fee Disclosure Q & As
Participant fee disclosure regulations were issued by the Department of Labor (DOL) on October 20, 2010. The new rules apply for plan years beginning after October 31, 2011; this means they apply to calendar plan years beginning in 2012. SunGard Relius has posted a 3-part Technical Update that provides questions and answers on the new participant fee disclosure regulations.
Click on the titles of each Technical Update below to read the answers to the questions.
- Why did the DOL issue participant fee disclosure regulations?
- Is investment of plan assets a fiduciary act governed by the fiduciary standards of ERISA?
- What is the relationship between the "401(k) plan" disclosure rules and the new particpiant fee disclosure rules?
- What is the relationship between the new participant fee disclosure regulations adn the service provider fee disclosure regulations issued by the DOL in July 2010?
- When do the participant fee disclosure regulations apply?
-
To which type of plans do the new particpant fee disclosure regulations apply?
-
Do the new regulations apply only if the employer-sponsor intends the plan to comply with ERISA 404(c)?
-
In a participant-directed plan, what are the plan administrator's fiduciary responsibilities under the new regulations?
-
What fiduciary protections do the participant fee disclosure regulations provide to a plan administrator?
-
What changes do the new regulations make regarding the disclsoure requirements under ERISA 404(c)?
-
Must a fiduciary that wishes to afford itself of the protection of ERISA 404(c) satisfy the disclosure requirements under the participant fee disclosure regulations?
-
Will the new participant fee disclosure regulations require any disclosures in addition to those currently required to qualify for 404(c) protection?
-
Do the new participant fee disclosure regulations modify any of the disclosure requirements previously required under ERISA 404(c)?
-
How do the participant fee regulations affect the fiduciary protection that ERISA 404(c)(5) provides to a fiduciary for its investment of a participant's account in a qualified default investment alternative (QDIA)?
-
If a plan fails to comply with the participant fee disclosure regulations, has the plan administrator breached its fiduciary duty? Will the plan fiduciary lose 404(c) protection?
-
What plans are subject to the new regulations?
-
Are IRA arrangements subject to the new regulations?
-
Do the regulations apply to governmental or church plans?
-
Do the regulations apply to plans eligible to file Form 5500-EZ?
-
Do the regulations apply to a 403(b) plan?
-
Do the regulations apply to trustee-invested plans?
-
Do the regulations apply to 457(b) plans?
-
Do the regulations apply to plans in which participants can direct the investment of deferrals but cannot direct the investment of employer contributions?
-
A defined contribution plan allows participants to select between a conservative portfolio, a balanced portfolio and an aggressive portfolio. The Plan Administrator selects the investments for each portfolio. The participant has no capability to select investments within a portfolio. Is the plan subject to the regulations?
-
Overall, what are the disclosure requirements of the new regulations?
-
Must the Plan Administrator make the annual disclosures to individuals who are elegible to defer but who do not have an account balance because they have chosen not to defer?
-
Which beneficiaries are entitled to receive disclosures under the regulations?
-
How do the participant fee disclosure regulations compare to the service provider fee disclosure regulations the DOL issued in July?
Please
contact us with questions about how service provider or participant fee disclosure regulations apply to services provided by independent third party administrators (TPAs).