Human Resources

Service Provider Fee Disclosure Rules Now Final: Next Steps for Retirement Plan Fiduciaries


The Department of Labor (DOL) published final service provider fee disclosure rules under Section 408(b)(2) of the Employee Retirement Income Security Act (ERISA) on February 3, 2012. The rules address the information that a retirement plan service provider must give to the plan’s fiduciary regarding the fees and other forms of compensation that the service provider expects to receive for contracted services. These new final rules include several changes from the interim rules that the DOL published in July 2010. The rules are intended to enable plan fiduciaries to receive the information they need to make meaningful evaluations as to the reasonableness of the service provider fees paid by retirement plans and their plan participants.

The Aon Hewitt report below begins with a summary of the changes to the interim final rules that are now in the new service provider fee disclosure regulation. Next is an outline of the steps plan fiduciaries and service providers should consider to assure that their fee arrangements comply with the new rules. Finally, we provide an overall summary of the provisions of the fee disclosure regulation.

Service Provider Fee Disclosure Rules Now Final: Next Steps for Retirement Plan Fiduciaries