Client Alert
| August 26, 2010
Department of Labor Issues Interim Final 408(b)(2) Regulations Requiring Disclosure of Service Provider Compensation
On July 16, 2010, the Department of Labor (“DOL”) issued an interim final regulation (the “Regulation”) that amends existing regulations defining what constitutes a “reasonable” service contract or arrangement for purposes of Section 408(b)(2) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Under the Regulation, certain service contracts and arrangements between a pension plan and a party in interest will not be considered reasonable for purposes of Section 408(b)(2) unless the service provider discloses to the plan’s fiduciary certain information regarding the compensation that will be received in connection with the provision of services to the plan.
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