Labor Department Proposes Greater Disclosure From Benefit Plan Service Providers
The increased complexity and scope of companies servicing benefit plans have given rise to conflicts of interests, DOL says.
By Jeremy Smerd Comments 0 | Recommend 0
Call for Transparency: Federal officials want to require companies that
provide services to employee benefit plans to disclose conflicts of interest.
The Employee Benefits Security Administration, part of the Department of Labor,
proposed in December to require “certain providers of services” to benefit plans
to disclose fees, compensation or any other conflict of interest that “may
adversely affect the service provider’s performance.”
The new rule could cover 401(k) service providers, health plan fiduciaries
like HMOs and pharmacy benefit managers, consultants, third-party administrators
and financial investment advisors. The proposed rule could also cover those
hired to provide actuarial, accounting, auditing and legal services. The
Employee Benefits Security Administration, which listed the proposal in the
Federal Register on December 13, estimated the cost of compliance at $52 million
in the first year, and $36 million annually thereafter. Written comments on the
proposed rule must be received by February 11, 2008.
Jeremy Smerd is a Workforce Management staff writer based in New York. E-mail editors@workforce.com to comment.
Reproductions and distribution of the above article are strictly prohibited. To order reprints and/or request permission to use the article in full or partial format, please contact our Reprint Sales Manager at (732) 723-0569.
Comments
Guidelines: Comments that include profanity or personal attacks or other inappropriate comments or material will be removed
from the site. We will take steps to block users who violate any of our posting standards, terms of use or privacy policies
or any other policies governing this site. You are fully responsible for the content you post.
= Member Only
