Update on 408(b)(2)

The Fi360 blog is reporting that the DOL is expected to withdraw 408(b)(2) and the regulations on participant disclosures. For those not familiar with 408(b)(2), it is the proposed Department of Labor regulation that aims to provide more effective disclosure of indirect compensation by plan service providers. The withdrawal of the regulation would be a significant development, though I would expect that the combination of enhanced Schedule C reporting requirements on the 2009 Form 5500 and the spectre of significant legislation by George Miller in 2009 make this a hollow victory for those who felt the regulation went too far. The DOL will likely make an announcement in the near future to clear things up.  Stay Tuned.

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