DOL Issues Final ERISA 408(b)(2) Regulations and Delays Effective Date

February 08, 2012
The U.S. Department of Labor published final regulations on February 3, 2012 under ERISA Section 408(b)(2) regarding the disclosure obligations that service providers to covered plans must satisfy in order for an arrangement to be reasonable and therefore to qualify for the exemption for service contracts or arrangements between a plan and a party in interest. The regulation’s effective date has been extended three months to July 1, 2012 (from April 1, 2012) to allow additional time for compliance, so covered service providers must now provide initial disclosures to covered plans prior to July 1, 2012. This update summarizes the final regulations.