Aiming to curb confusion, misunderstandings and lack of disclosure related to the fees associated with retirement plans, the Department of Labor has enacted a new regulation, Section 408(b)(2), effective Jan. 1, 2012.
To maintain compliance with this new regulation, there are several steps for sponsors to take:
- Document your review and decision-making process.
- Assess service providers’ competence by reviewing their references and credentials.
- Compare providers’ services and compensation with offerings made to plans comparable to yours in terms of size and other characteristics.
- Analyze vendors’ conflicts of interest.
- Document the basis for the selection of the service providers.
- Monitor the service providers.
Information provided by Oswald Financial.