Identifying Plan Fiduciaries Under ERISA Section 408(b)(2): A Must Ask Must Tell Protocol
With new disclosure requirements in effect, plan sponsors must identify fiduciaries and service providers must know who to communicate with to meet their disclosure obligations.
David Witz1 min read122 wordsBefore 2010 ended, the Department of Labor issued final regulations under ERISA Sections 404(a) and 404(c) requiring the disclosure of investment and expense information to plan participants. It should now be abundantly clear the retirement industry must operate under a new regulatory environment of explicit, non-optional, and nonnegotiable obligations to disclose more information than ever before.
The Must Ask Must Tell Protocol
ERISA Section 408(b)(2) dictates that service providers will be responsible for delivering the required disclosures to the “responsible plan fiduciary.” This will require a service provider to take a proactive role in determining the identity of the responsible plan fiduciary.
Conclusion
The new regulatory environment demands transparency and accountability. Plan sponsors must identify their fiduciaries, and service providers must ensure they are communicating with the right individuals.
