In an article for Bloomberg Law, benefits and executive compensation partner Brad Campbell commented on FAQs from the Employee Benefits Security Administration (EBSA) on the Department of Labor’s (DOL) income disclosure rule, which requires employers to issue lifetime income illustrations to retirement plan participants.
The publication explained that the EBSA’s FAQs clarify when plan sponsors would need to issue first disclosures under the DOL’s interim final rule. The department said it appreciates concerns about the burdens that could arise if the final rule differs materially from the interim rule without a sufficient transition period but that it would issue the final regulation “as soon as practicable based on feedback from comments received” for the interim final rule.
Campbell, former head of the EBSA, said he believes the agency is likely signaling it will change the rule enough to modify those assumptions. But if it does, recordkeepers will have another big job ahead of them.
The full article is available for Bloomberg Law subscribers.