Los Angeles partners Fred Reish and Bruce Ashton, and Chicago associate Josh Waldbeser, wrote an article for Plan Consultant titled, “Participant Disclosure Regulations: Challenges for Recordkeepers.”
The article discusses the duty to make disclosures of fees, expenses, and certain plan and investment-related information to the participants in covered plans to ensure participants are aware of charges against their accounts and information about the investments available under the plan.
The responsibility under the Employee Retirement Income Security Act (ERISA) to provide the required information and materials falls on the plan administrator, however, as a practical matter, carrying out this responsibility will almost always be delegated to a plan’s recordkeeper.
The article notes that while recordkeepers have been providing disclosure materials to participants for years, “there are potential challenges that recordkeepers should be prepared to address.”
Fred, Bruce and Josh address the administrative challenges recordkeepers face, such as the investment-related information required by the 404(1)-5 regulation, the disclosure of expenses, obtaining information related to designated investment alternatives, and investment disclosure requirements.