New Participant Disclosure Requirements effective April 2012
Effective April 1, 2012, Plan Fiduciaries must provide information and fee disclosures to Plan Participants. DOL Final Regulations issued July 16, 2010 and October 20, 2010, require Plan Fiduciaries for Participant-directed defined contribution plans, such as 401(k) plans, to provide detailed annual and quarterly fee, investment, performance, and other information to Plan Participants. The purpose of these disclosures is to provide Plan Participants with the information they need to manage and invest their accounts, and thus provide Plan Fiduciaries with ERISA Section 404(c) safe harbor protection. The Final Regulation provides a model notice, and the DOL has issued a 401(k) model notice. The Plan Administrator must also provide a website for access to investment information. Transition rules were issued on July 19, 2011, based on same April 1, 2012 effective date. The initial annual disclosure is due no later than May 31, 2012, and the initial quarterly disclosure is due no later than August 24, 2012. For more information on the new participant disclosure requirements, please contact your Trust Fund counsel.
Author: Ashley K. Ikeda
