Following an announcement in February of its intent to push back the applicability date for two new fee disclosure rules. the Employee Benefits Security Administration (EBSA) took public commentary (mostly favorable) and now appears ready to publish the extension in the Federal Register tomorrow (June 1, 2011).
The original applicability date was set for July 16, 2011, for plan years beginning on or after Nov. 1, 2011, but the extension will push the start date back to Jan. 1, 2012.
The two affected rules were issued on separate occasions, but with the same applicability date. The fiduciary-level fee disclosure rule was issued on July 16, 2010, requiring enhanced disclosures that certain pension plan service providers must give to plan fiduciaries. Another rule, the participant-level fee disclosure regulation, was issued on Oct. 20, 2010, enhancing disclosure requirements for participant-directed individual accounts such as 401(k)s.
A 14-day public commentary period opens on the extensions once they are published in the Federal Register. Comments may be submitted electronically to e-ORI@dol.gov, or via the federal eRulemaking portal, or by mail or hand-delivery to Office of Regulations and Interpretations, Employee Benefits Security Administration, Room N–5655, U.S. Department of Labor, 200 Constitution Avenue, NW, Washington, DC 20210, Attention: Fee Disclosure Applicability.