The Department of Labor says that monitoring fees is “an ongoing and important part of a fiduciary’s responsibility.”
Plan sponsors are frequently interested in what expenses can be paid from plan assets. The first step in that determination involves making sure that the plan document allows the payment of any expenses from plan assets.
Assuming that the plan allows it, the Department of Labor has divided plan expenses into two types: so-called “settler expenses,” which must be borne by the employer, and administrative expenses, which—if they are reasonable—may be paid from plan assets.
In general, settlor expenses include the cost of any services provided to establish, terminate, or design the plan. These are the types of services that generally are seen as benefiting the employer, rather than the plan beneficiaries.
Administrative expenses include fees and costs associated with things like amending the plan to keep it in compliance with tax laws, conducting nondiscrimination testing, performing participant recordkeeping services, or providing plan information to participants.
September 02, 2010
Comments Endorse Fee Disclosure Flexibility, Additional Compliance Time
Comments Endorse Fee Disclosure Flexibility, Additional Compliance Time. September 2, 2010 (PLANSPONSOR.com) – A selection of the 44 comments received by the U.S. Department of Labor (DoL) about its pending fee-disclosure rule shows broad support for the rule’s intent, but continued pressure for more regulatory
August 31, 2010
Lawmakers: Keep 408(b)(2) Disclosures Simple
Lawmakers: Keep 408(b)(2) Disclosures Simple
August 31, 2010 (PLANSPONSOR.com) – A letter to the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) from five key lawmakers urges the agency to require service providers covered by proposed fee disclosure regulations to make their disclosur
August 30, 2010
ASPPA Suggests Change to Providers Covered under Fee Disclosure Regs
ASPPA Suggests Change to Providers Covered under Fee Disclosure Regs
August 30, 2010 (PLANSPONSOR.com) – In response to the U.S. Department of Labor Employee Benefits Security Administration’s interim final rule on fee disclosure, the American Society of Pension Professionals & Actuaries (ASPPA) and an affi
August 03, 2010
PSNC 2010: Benchmarking Fee Data Still a Challenge
PSNC 2010: Benchmarking Fee Data Still a Challenge August 3, 2010 (PLANSPONSOR.com) – While benchmarking your plan fees may be considered a basic part of carrying out your fiduciary responsibilities, it can be a bit harder said than done because of a shortage of strong plan fee databases. Fred Schneyer e