Benefits Forward » DOL Guidance

Highlight of Changes to Final Service Provider Disclosure Regulations

administrator — Thu, 02 Feb 2012 23:33:21 +0000

In addition to issuing the final regulations with a delayed effective date, the DOL has also issued a Summary highlighting the changes made in the final regulations.

Document Excerpt

Link http://www.dol.gov/ebsa/408b2changes.html

Fact Sheet On Service Provider Disclosure Final Regulations

administrator — Thu, 02 Feb 2012 23:30:57 +0000

In conjunction with the issuance of final regulations, the DOL has issued a Fact Sheet on the final service provider disclosure regulations.

Document Excerpt

The Employee Retirement Income Security Act (ERISA) requires plan fiduciaries, when selecting and monitoring service providers and plan investments, to act prudently and solely in the interest of the plan’s participants and beneficiaries. Responsible plan fiduciaries also must ensure that arrangements with their service providers are “reasonable” and that only “reasonable” compensation is paid for services. Fundamental to the ability of fiduciaries to discharge these obligations is obtaining information sufficient to enable them to make informed decisions about an employee benefit plan’s services, the costs of such services, and the service providers.

Link http://www.dol.gov/ebsa/newsroom/fs408b2finalreg.html

DOL Finalizes and Delays Service Provider Level Disclosure

administrator — Thu, 02 Feb 2012 23:26:57 +0000

The Department of Labor has both finalized and delayed the application of its service provider fee disclosure regulations.

Document Excerpt

This document contains a final regulation under the Employee Retirement Income Security Act of 1974 (ERISA or the Act) requiring that certain service providers to pension plans disclose information about the service providers’ compensation and potential conflicts of interest. These disclosure requirements are established as part of a statutory exemption from ERISA’s prohibited transaction provisions. This regulation will affect pension plan sponsors and fiduciaries and certain service providers to such plans.

Link http://www.dol.gov/ebsa/pdf/2012-02262-PI1.pdf

Fall Regulatory Agenda

administrator — Thu, 26 Jan 2012 14:44:24 +0000

The Office of Management and Budget releases the DOL Fall 2011 regulatory agenda and rule status report.

Document Excerpt

Link http://www.reginfo.gov/public/do/eAgendaMain?operation=OPERATION_GET_AGENCY_RULE_LIST¤tPub=true&agencyCd=1200&Image58.x=54&Image58.y=13&Image58=Submit

HHS Final Rule on Reporting Retiree-Plan Drug Costs

administrator — Fri, 13 Jan 2012 15:57:09 +0000

HHS has published a final rule implementing provisions regarding the reporting of gross covered retiree plan related prescription drug costs and retained rebates by Retiree Drug Subsidy sponsors.

Document Excerpt

This final rule implements and finalizes provisions regarding the reporting of gross covered retiree planrelated prescription drug costs (gross retiree costs) and retained rebates by Retiree Drug Subsidy (RDS) sponsors;and the scope of our waiver authority under the Social Security Act (the Act).

Link http://www.gpo.gov/fdsys/pkg/FR-2012-01-12/pdf/2012-473.pdf

Updated Electronic Disclosure Guidance For Participant Fee Disclosure

administrator — Fri, 06 Jan 2012 20:28:32 +0000

The DOL has revised its website to reflect its revision to the interim electronic disclosure policy under the participant disclosure regulations.

Document Excerpt

On September 13, 2011, the Department issued Technical Release 2011-03 (TR 2011-03), which sets forth an interim enforcement policy regarding the use of electronic media to satisfy the disclosure requirements under 29 CFR 2550.404a-5. In response, staff at the Department’s Employee Benefits Security Administration (EBSA) has received inquiries on whether, and to what extent, TR 2011-03 is intended to apply to continuous access Web sites and whether, and under what circumstances, the release permits investment-related information, specifically comparative chart information required by paragraph (d) of section 2550.404a-5, to be furnished as part of a pension benefit statement described in section 105 of the Employee Retirement Income Security Act (ERISA). In issuing TR 2011-03, it was not EBSA’s intent to preclude the use of continuous access Web sites. Nor was it EBSA’s intent to preclude furnishing comparative chart information as part of, or along with, pension benefit statement information, either through electronic media under the conditions in section C of the release or in paper form. After reviewing TR 2011-03 in light of these inquiries, EBSA is persuaded that plan administrators and their service providers would benefit from the requested clarifications. In lieu of issuing a separate document, designed to be read in conjunction with TR 2011-03, EBSA has instead decided to revise and restate TR 2011-03 as Technical Release 2011-03R. The revised technical release is identical to TR 2011-03 except as necessary to clarify the aforementioned issues.

Link http://www.dol.gov/ebsa/newsroom/tr11-03r.html

Fact Sheet on MEWA Proposed Regulations

administrator — Mon, 05 Dec 2011 20:23:33 +0000

The DOL has issued a Fact Sheet on its proposed regulations governing MEWAs issued to reflect the Affordable Care Act.

Document Excerpt

Link http://www.dol.gov/ebsa/newsroom/fsproposedm1revisions.html

Notice of Proposed Revision to Form M-1

administrator — Mon, 05 Dec 2011 20:18:09 +0000

The DOL has issued a notice of proposed revision to the Form M-1 required to be filed by MEWAs.

Document Excerpt

This document announces proposed revisions to the Form M-1, Report for Multiple Employer Welfare Arrangements (MEWAs) and Certain Entities Claiming Exception (ECEs). The revisions can be viewed on the Employee Benefits Security Administration’s (EBSA) website at www.dol.gov/ebsa. The proposed form is substantively different from previous versions of the Form M-1 and may not be used for filing purposes.

Link http://www.gpo.gov/fdsys/pkg/FR-2011-12-06/html/2011-30920.htm

Proposed Revision to 5500 for MEWAs

administrator — Mon, 05 Dec 2011 19:32:52 +0000

The DOL has issued a Notice of proposed revisions to the Form 5500 for MEWAs.

Document Excerpt

This document contains proposed revisions to the Form 5500 Annual Return/Report filed by administrators of employee benefit plans. The proposed revisions are intended to enhance the Department of Labor’s ability to enforce the reporting requirements for multiple employer welfare arrangements (MEWAs) under Title I of the Employee Retirement Income Security Act of 1974, as amended (ERISA).

Link http://www.gpo.gov/fdsys/pkg/FR-2011-12-06/html/2011-30919.htm

MEWA Reporting Requirements

administrator — Mon, 05 Dec 2011 19:28:37 +0000

The DOL has issued proposed rules governing reporting requirements by MEWAs.

Document Excerpt

This document contains a proposed rule under title I of the Employee Retirement Income Security Act (ERISA) that, upon adoption, would implement reporting requirements for multiple employer welfare arrangements (MEWAs) and certain other entities that offer or provide health benefits for employees of two or more employers. The proposal amends existing reporting rules to incorporate new provisions enacted as part of the Patient Protection and Affordable Care Act (Affordable Care Act) to more clearly address the reporting obligations of MEWAs that are ERISA plans.

Link http://www.gpo.gov/fdsys/pkg/FR-2011-12-06/html/2011-30918.htm