Practice Areas

Revised Pension Plan Service and Fee Disclosure Requirements

April 2012

By: Peter E. Hansen, Esq.

On July 1, 2012, certain pension plan service providers must begin to disclose additional service and fee information to their clients. The requirements, codified at 29 CFR §2550.408b-2, apply to service providers that expect to receive $1,000 or more in compensation for fiduciary, investment, administrative, and/or related services to most pension plans. Affected service providers must disclose, in writing, a description of services provided; the amount of direct and indirect compensation expected to receive from the plan or from the termination of any arrangement regarding the plan; the manner in which the service provider will receive the compensation; and, where applicable, a statement that the service provider will provide fiduciary and/or investment advisor services. Failure to meet the disclosure requirements may render the agreement prohibited and require corrective action, so pension plan service providers and employers that use pension plan service providers should begin taking steps to comply with the regulations immediately.

Questions? Please contact WS Attorney Peter E. Hansen at (262) 560-9696, or email pehansen@wesselsherman.com .