DOL Extends Applicability Dates for the Service Provider Fee Disclosure and Participant-Level Fee Disclosure Regulations
Foster Swift Employment, Labor & Benefits Quarterly
The Department of Labor ("DOL") recently issued a final regulation that extends the applicability dates for the Service Provider Fee Disclosure and the Participant-Level Fee Disclosure Regulations (the "Applicability Date Extension Regulation"). The Applicability Date Extension Regulation extends the effective date for the Service Provider Fee Disclosure Regulation from July 16, 2011 to April 1, 2012. This extension differs from and takes into account the public comments received in response to the Notice of Proposed Extension of Applicability Dates published by the DOL on June 1, 2011.
The Participant-Level Fee Disclosure Regulation is effective for plan years beginning on or after November 1, 2011 (the "Effective Date"). Originally, plan administrators were required to furnish initial disclosures to participants and beneficiaries within 60 days of the Effective Date. The Applicability Date Extension Regulation, however, provides that initial disclosures must be furnished to participants and beneficiaries no later than the later of (1) 60 days after the first day of the first plan year beginning on or after November 1, 2011, or (2) 60 days after the April 1, 2012 effective date of the Service Provider Fee Disclosure Regulation. This means that although the Participant-Level Fee Disclosure Regulation still applies to a calendar year plan on January 1, 2012, a calendar year plan has until May 31, 2012 (60 days after the effective date of the Service Provider Fee Disclosure Regulation) to furnish initial disclosures to participants and beneficiaries. Certain quarterly statements must be furnished no later than 45 days after the end of the quarter in which the initial disclosures are required to be furnished (no later than August 14, 2011 for a calendar year plan).
Please contact your Foster Swift employee benefits professional if you have any questions.