The Department of Labor (DOL) issued interim final regulations on July 16, 2010, that require certain service providers to retirement plans to provide fiduciaries with information regarding the fees charged to the plan (the Interim Final Regulations). This additional information is intended to allow fiduciaries to better assess the reasonableness of the fees. The Interim Final Regulations were intended to take effect on July 16, 2011, one year from the date of issuance. On February 11, 2011, the DOL announced that it will delay the applicability date under the Interim Final Regulations to January 1, 2012. This delay is intended to allow the DOL more time to take into consideration the comments it received on the Interim Final Regulations during the comment period, which ended on August 30, 2010. The delay also allows retirement plan fiduciaries and service providers more time to adapt to the fee disclosure rules. The DOL still intends to issue final regulations prior to 2012, and presumably any major changes from the Interim Final Regulations should have a later effective date.
For an in-depth review of the Interim Final Regulations, please see our legal alert: “DOL Takes AIM at Hidden Retirement Plan Fees.”