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DOL Releases Final Plan Fee Regulations and Extends Effective Date to July 1, 2012
The Department of Labor announced the release of final regulations under ERISA § 408(b)(2), DOL Reg. § 2550.408b-2 or "408b-2" for short. The much-anticipated final rule is an amendment to a long-standing DOL rule providing the only method whereby vendors are permitted to provide services to or receive payments for those services from ERISA retirement plans. The amendment has been called the "reasonable contract or arrangement rule" and the "point of sale disclosure rule" because it requires disclosure to fiduciaries of services, compensation, and fiduciary status in order for the services and compensation to avoid being considered a prohibited transaction.
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