Updated with correction.
EBSA on Wednesday will publish a notice of its intent to delay the effective date for fee-disclosure rules for plan service providers and participants.
Under the Employee Benefits Security Administration's interim final rule, 408(b)(2), service providers were to have begun disclosing information about fees and potential conflicts of interest by this July, but in February it suggested moving the date back to Jan. 1, 2012.
For plan participants, disclosure rules were set to kick in for plan years beginning on or after Nov. 1, 2011, with 60 days for transition. The proposal extends the transition to 120 days for employers to provide information to workers.
“We want employers and workers to benefit from the increased transparency provided by these rules as soon as possible,” Phyllis C. Borzi, assistant labor secretary for the EBSA, said in a news release. “But we also appreciate that service providers may need more time for compliance efforts, because they have not yet seen a final” 408(b)(2) regulation.
The actions “are both positive developments,” Larry Goldbrum, general counsel at the SPARK Institute, said in an interview, “but until we see the final final rule, it's still difficult to tell.”