Los Angeles partner Bruce Ashton was quoted in a March 13 PLANSPONSOR article titled, “Streamlined Fee Data May Have a Hitch.” The article discusses the Department of Labor's (DOL) fee data proposal which should make it easier for plan sponsors to find the information they need to assess whether a service arrangement and the compensation are reasonable.
Bruce said covered service providers will have to furnish a separate document that details where the plan sponsor can find required information—“and plan sponsors must know they are supposed to receive this document.”
He said that is crucial information, because if plan sponsors do not receive the guide along with the required disclosures, they need to ask for it. And if they still don’t get it, that failure has to be reported to the DOL, and the service agreement must be terminated.
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