According to a News Release dated February 11, 2011, the Employee Benefits Security Administration (the “EBSA”) will postpone the effective date for the new disclosure rules under section 408(b)(2) of ERISA to Jan. 1, 2012.
The News Release says that an interim-final regulation on these new rules was issued on July 16, 2010. The regulation requires certain persons, who provide services to employee pension benefit plans, to disclose information about the services to plan fiduciaries. This information will help the fiduciaries assess the reasonableness of the fees being charged for the services, and review any potential conflicts of interest that might affect the quality of the services. The new rules had been scheduled to apply to plan contracts or arrangements for services in existence on or after July 16, 2011.
The delay in the effective date will allow the EBSA to review all of the input it has received on the new rules, and will provide time for plans and service providers to take steps to comply with any changes made to the rules as a result of this review.