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5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.
The Employee Benefits Security Administration (EBSA) has issued direct final regulations that revise the mailing address and web-based submission procedures for filing certain notices with the DOL under the fiduciary-level fee disclosure regulations’ fiduciary class exemption provision. EBSA also released proposed regulations that accompany the direct final regulations. The proposed amendment is the same as the amendment contained in the direct final regulations.
Background
In February 2012, the fiduciary-level fee disclosure regulations under ERISA §408(b)(2) were finalized with an extended effective date of July 1, 2012. The final regulations require certain service providers to retirement plans to disclose information about the service providers’ compensation and potential conflicts of interest to plan fiduciaries. If the disclosure requirements are not met, a prohibited provision of services under ERISA §406(a)(1)(C) will occur. However, the final regulations provide an exemption for a responsible plan fiduciary from the prohibited transaction provisions, if the fiduciary takes certain steps upon discovery of the disclosure failure. Among other things, the fiduciary must make a written request for the undisclosed information to the service provider. If the service provider does not comply within 90 days, the responsible plan fiduciary must notify the DOL. Two addresses were included the final regulations, one for paper notices and one for electronic notices.
Changes to notice requirements
The direct final regulations reflect a new mailing address and provide for electronic submission through the DOL’s website. For paper notices, a dedicated post office box has been established to replace the original mailing address. In addition, effective September 14, 2012, the DOL is eliminating the email address previously provided in the final regulations. Instead, responsible plan fiduciaries may submit notices electronically through a link on the DOL’s website at www.dol.gov/ebsa/regs/feedisclosurefailurenotice.html. Instructions for using this website will be provided separately by the DOL. The website will include clear instructions for submissions and provide immediate confirmation to responsible plan fiduciaries that notices have been received by the DOL.
Effective date and comments
The DOL believes that the new electronic submission process will benefit both the responsible plan fiduciaries and the DOL, and, thus, does not anticipate any significant adverse comment on the changes. However, information about submitting comments has been provided. If no significant adverse comment is received during the comment period, no further action on the proposed regulations will be taken. Therefore, the direct final regulations will be effective September 14, 2012, without further action or notice, unless significant adverse comments are received by August 15, 2012. If significant adverse comments are received, a timely withdrawal of the amendment in the Federal Register will occur.
Source: 77 FR 41678, July 16, 2012
For more information, visit http://www.wolterskluwerlb.com/rbcs.
For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.
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