Mainspring Partner

Winter 2009

Still No Fee Guidance From DOL

The future of retirement plan fee guidance is unclear as the Department of Labor failed to finalize its proposed regulations before the first quarter of 2009.

The department announced in July that its proposed rules would make it easier for fiduciaries and participants to understand and compare expenses associated with their retirement plans, and when finalized, these rules would take effect Jan. 1, 2009.

Halfway through the first quarter, there are still no actions required for plan providers and their clients. Now, it is up to the new administration to decide whether to finalize, withdraw or leave the regulations in their proposed state.

Although the members of Congress and the DOL have changed, the need for fee disclosure guidance remains the same. Over recent years, complexities in how providers offer services have made it difficult for plan sponsors and fiduciaries to understand what a plan actually pays for them. These complexities have also hampered fiduciaries’ abilities to identify potential conflicts of interest that could affect administrative costs and quality of service.

It is likely the new administration will continue to review the issues surrounding fee disclosure in the future, and The Standard will be prepared to address any new regulations that may result.