Defined contribution plan providers got a reprieve Friday on new fee disclosure rules after the Department of Labor's Employee Benefits Security Administration pushed back the applicability date to Jan. 1, 2012.
The rules had been scheduled to take effect July 16.
ESBA needed more time to review public comments on proposed interim rules before issuing a final version under section 408(b)(2) of ERISA, said Phyllis C. Borzi, assistant secretary of labor for the EBSA, in a news release.
Industry sources in the fall predicted that the effective date for the new disclosure rules, which require service providers to give more explanation of their DC plan fees to plan sponsors, would have to be extended if the DOL decided to make significant changes to the interim rule in response to public suggestions.
“The department intended to have final rules in place sufficiently in advance of the July 16 applicability date to avoid compliance problems for both plans and their service providers. Given the need to ensure a careful review of all the valuable input we received on the interim final rule, including suggestions for a summary document to further assist plan fiduciaries in their review of furnished information,” the postponement is essential, Ms. Borzi said in the release.
Gloria Della, an EBSA spokeswoman, could not be reached for additional comment.