Final 401(k) disclosure rule issued

The U.S. Department of Labor’s Employee Benefits Security Administration has issued a final rule that will provide employers sponsoring pension and 401(k) plans with information about the administrative and investment costs associated with providing such plans to their workers. The department also announced a three-month extension in the effective date of this rule, meaning service providers must be in compliance by July 1 for new and existing contracts or arrangements between ERISA-covered plans and service providers. The department also issued proposed guidance for changes that would make it easier for retirees to choose to receive their benefits as lifetime streams of income.

The U.S. Department of Labor’s Employee Benefits Security Administration has issued a final rule that will provide employers sponsoring pension and 401(k) plans with information about the administrative and investment costs associated with providing such plans to their workers. The department also announced a three-month extension in the effective date of this rule, meaning service providers must be in compliance by July 1 for new and existing contracts or arrangements between ERISA-covered plans and service providers. The department also issued proposed guidance for changes that would make it easier for retirees to choose to receive their benefits as lifetime streams of income.