There are few sure things in life, and although it is probably safe to say that ERISA disclosure regulations would not be considered one of them, there has certainly been a steady stream of new ERISA-related disclosure and reporting obligations being imposed on plan fiduciaries.

The latest installment from the U.S. Department of Labor came out on March 12, 2014, in the form of a proposed amendment to its final regulations under Section 408(b)(2) of ERISA (commonly referred to as the “necessary services exemption”). The proposed amendment, if finalized in its current form, would require covered service providers to furnish a “guide” to assist ERISA plan fiduciaries in reviewing the initial disclosures required by the final regulations, but only if the required initial disclosures are contained in multiple or “lengthy” documents.

The final regulations were part of a three-pronged approach to new disclosure rules issued by the DOL within the past decade that was aimed at improving the transparency of plan fees and conflicts of interest to plan fiduciaries, the DOL and plan participants and beneficiaries:

• First came the changes to the Form 5500 Schedule C reporting requirements — these relate to a plan’s reporting requirements to the DOL on the plan’s annual Form 5500 Return/Report;
• Next came new ERISA Section 404(a)(5) participant-level disclosure rules — these relate to a 401(k)-type plan’s reporting requirements to its participants and beneficiaries; and
• Finally, new ERISA Section 408(b)(2) service provider compensation disclosure regulations (i.e., the final regulations) — these relate to an ERISA pension plan service provider’s reporting requirements to its ERISA pension plan clients.