REMINDER: Ongoing Participant Fee Disclosure Obligations for Retirement Plan Sponsors

July 2013

In 2011 and 2012, we alerted you to new requirements on plan administrators of participant-directed defined contribution retirement plans (e.g., 401(k) plans, 403(b) plans, profit sharing plans and money purchase plans) that are covered by the Employee Retirement Income Security Act (“ERISA”) to disclose certain plan and investment-related information, including fee, expense and investment performance information, to participants and beneficiaries. Please click here to read those prior Alerts.

For most plans, the first annual fee disclosure notices were initially required by August 30, 2012, and many plans distributed their first annual fee disclosures in August 2012.1 As a result, we now write to remind you that the second round of annual notices will be due by the first anniversary of the date that the first annual notices were distributed, which for most plans will be in August 2013. As detailed in our prior Alerts, the annual notice must be distributed to participants and beneficiaries and must include plan-related information and a comparative chart of investment-related information. Other disclosures to participants and beneficiaries continue to be due on a quarterly basis (these disclosures must include actual administrative and individual expenses charged to individual accounts).

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