DOL Issues New Regulation Imposing Fee Disclosure Rules on Service Providers to ERISA Retirement Plans

July 27, 2010
The U.S. Department of Labor published an interim final regulation that expands the disclosure obligations that service providers must satisfy in order to qualify for the exemption for service contracts or arrangements between a plan and a party in interest under Section 408(b)(2) of ERISA. This update examines the new regulation, which is intended to assist plan fiduciaries in assessing the reasonableness of contracts or arrangements, including the reasonableness of a service provider’s compensation and potential conflicts of interest that may affect a service provider’s performance.