The U.S. Department of
Labor (DOL) has issued a proposed rule that would force 401(k) plan
administrators to report compensation they derive directly and indirectly from
their services. In addition, the rule would require plan administrators to
disclose in writing potential conflicts of interest to plan fiduciaries, namely
employers. The regulation’s main purpose is to disclose information that will
assist employers in assessing the reasonableness of the compensation or fees
paid for services administrators give to the plan, in addition to the potential
for conflicts of interest that could affect a plan administrator’s ability to
perform its services. Note that information about plan fees and conflicts of
interest may not be readily available to employees. To read the proposed rule,
visit www.dol.gov/ebsa/regs/fedreg/proposed/2007024064.pdf.
Join us this fall in San Francisco for the California Employment Law Update conference, a 3-day event that will teach you everything you need to know about new laws and regulations, and your compliance obligations, for the year ahead—it’s one-stop shopping at its best.