ERISA issues new rules
The U.S. Department of Labor has issued new fee disclosure rules under the Employee Retirement Income Security Act of 1974, effective this year.
Under the first set of rules, retirement plan providers must alert plan fiduciaries, or dentist/plan sponsors, of their fees by July 1. The information is intended to provide them with the fee and service information they need to ensure that the plan pays reasonable fees for necessary services.
The disclosures must include, among other items, descriptions of the services to be provided, the provider’s status as a fiduciary, if applicable, and the direct and indirect compensation that the provider expects to receive from the plan for the services, according to AXA Equitable Life Insurance Co., the plan administrator for the ADA Member Retirement Program. If the information is not disclosed, the service arrangement with a provider could be considered prohibited under federal law.
AXA Equitable plans to send its fee disclosure document to the dentist employers that participate in the program around June 15.
The second set of rules, the new participant fee disclosure rules, require plan sponsors to annually provide plan-eligible employees with details on plan administrative fees, individual fees and investment costs. This information is intended to raise awareness of the fees employees are paying and their impact on investment return so they can make informed decisions about their accounts.
These disclosures must be made by Aug. 30 to current eligible employees. AXA Equitable plans to send dentist employers that participate in the program the information needed to comply with these rules in early August.
Additional information on the fee disclosure rules can be found on the program website, www.axa-equitable.com/ada or by calling AXA Equitable at 1-800-223-5790.