408(b)(2) Fee Disclosures
Plan sponsors of most defined benefit and defined contribution plans were required in 2012 to request, receive and review disclosure statements from “covered service providers” who provide services of $1,000 or more, or who expect to receive $1,000 or more in indirect compensation over the course of providing services to the plan. These providers include plan fiduciaries or trustees, registered investment advisers, investment contract providers, investment managers and other professionals (including attorneys, actuaries, custodians and third-party administrators).
These plan sponsors should now be sending their covered service providers follow-up requests for any new or additional information that may change the disclosures received in 2012, or written confirmation from the covered service provider that the covered service provider has no new or additional information to report.
404(a)(5) Participant Disclosures
Plan sponsors of individually directed account plans must ensure that quarterly statements continue to comply with new information standards. Each quarterly statement must include information on the plan’s general administrative fees, individual expenses charged under the plan and updated performance data on fixed-return investments.