Finally the Final … 408(b)(2) Regulation
The DOL issued the final 408(b)(2) regulation on February 2, 2012.
Key points are:
- The extension of the effective date to July 1, 2012;
- The fact that service providers are not required to provide a summary of the disclosures, though the DOL provided a sample “guide” that is not mandatory;
- The addition of a requirement to describe the arrangement between a covered service provider and the payer of indirect compensation;
- Clarification that electronic transmission of the disclosures is permitted;
- Relief from the disclosure requirements for “frozen” 403(b) contracts;
- A new requirement that plan sponsors terminate the relationship with a service provider who fails or refuses to provide information on request;
- Limited relief for disclosures for brokerage accounts and similar arrangements.
Bruce Ashton and I have drafted a more detailed Alert for our law firm, Drinker Biddle & Reath LLP. That Alert is located at: