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Due Date for Next Annual 404a-5 Fee Disclosure


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7 replies to this topic

#1 ERISA1

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Posted 24 September 2012 - 11:15 AM

Hi - Now that we've made it past the August 30, 2012 deadline, what is the due date for the next annual report under the 404(a)-5 Regs? Thanks

Edited by ERISA1, 24 September 2012 - 11:16 AM.


#2 Bill Presson

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Posted 24 September 2012 - 01:06 PM

Hi - Now that we've made it past the August 30, 2012 deadline, what is the due date for the next annual report under the 404(a)-5 Regs? Thanks



Any time within 12 months of the last one.

William C. Presson, ERPA, QPA, QKA, APR

VP – Business Development

bill.presson@warrenaverett.com

D 205.769.3369

C 205.994.4070  

2500 Acton Road, Birmingham, AL 35243

 

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#3 ERISA1

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Posted 25 September 2012 - 12:36 PM

Thank you. Seems like, if you want to put the fee disclosure (for calendar year plans) on the same December 1 cycle as all other notices, you will have to re-publish the fee disclosure by December 1 of the same year.

#4 MoJo

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Posted 25 September 2012 - 01:03 PM

Thank you. Seems like, if you want to put the fee disclosure (for calendar year plans) on the same December 1 cycle as all other notices, you will have to re-publish the fee disclosure by December 1 of the same year.


Republish, yes, but not necessarily update. Investment info is based on the calendar year, so what we just did by 8/30 will be the same as what is republished, say on 12/1. Unless the other information requires updating, simply republishing (redistributing) on 12/1 resets the 12 month clock and puts you on regular schedule. We've contemplated this ourselves, but 1) that makes the investment comparative information somewhat dated raising the ire of (the few) investment savvy clients/participants; and 2) ticks off our clients (as they are the ones who will have to distribute the notice AGAIN, so soon).

#5 ERISA1

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Posted 26 September 2012 - 03:21 PM

Thanks for pointing out that we don't need to update investment performance. That means republishing can be as simple as redistributing the same package.

The one client with whom we are discussing republishing is enthusiastic because it puts all of the other notices (e.g., EACA, QDIA, SH) on the same schedule. It's sad to think that the hassle of republishing the 404a-5 notice is small compared to the nonsense of having to distribute 4 or more updated notices every year. Nuts

#6 Bill Presson

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Posted 26 September 2012 - 04:44 PM

Thanks for pointing out that we don't need to update investment performance. That means republishing can be as simple as redistributing the same package.

The one client with whom we are discussing republishing is enthusiastic because it puts all of the other notices (e.g., EACA, QDIA, SH) on the same schedule. It's sad to think that the hassle of republishing the 404a-5 notice is small compared to the nonsense of having to distribute 4 or more updated notices every year. Nuts



This is what we're planning as well.

William C. Presson, ERPA, QPA, QKA, APR

VP – Business Development

bill.presson@warrenaverett.com

D 205.769.3369

C 205.994.4070  

2500 Acton Road, Birmingham, AL 35243

 

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#7 clarkie604

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Posted 30 January 2013 - 06:49 PM

The regs say the annual notice is required to be provided at least once during any 12-month period.  So, if you chose the calendar year as your measuring period, doesn't the initial notice count for the 2012 plan year and you can send it again at any time in 2013 (e.g. December 1) and comply?



#8 Belgarath

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Posted 31 January 2013 - 08:11 AM

No, at least IMHO. (and probably that of most others) Barring new guidance from the DOL, you have to give it at least once in ANY 12 month period, without regard to whether the plan operates on a calendar or fiscal year basis.

 

And if you think about it, taking your interpretation would fly in the face of what the DOL is trying to accomplish, as you could essentially go for 2 years between "annual" disclosures. (Jan. 1 of 2012 for example, and December 31 of 2013. You could then repeat this cycle forever)

 

So my answer is no. And I don't expect the DOL to come around to your interpretation.