spd disclosure

[k man]

is there anyone out there that discloses asset based fees in the spd? i am referring to fees for admininstration, record keeping or even investment advisory fees.

[david rigby]

WRT recordkeeping fees, be careful, as this discussion notes:

http://benefitslink.com/boards/index.php?showtopic=24261

[alanm]

Disclosing all fees in the SPD is a requirement under title 29 CFR 2520.102-3(1)

particularly if you want 404c protection; not to mention the new proposed regs coming from the SEC

[Alf]

Nobody does it in the spd in my experience.

[Harwood]

Alanm: "Disclosing all fees in the SPD is a requirement under title 29 CFR 2520.102-3(1)" Are you sure of the cite, i.e. the (1)?

[k man]

alf, i read that cite and interestingly i have never seen it. i dont think it is a clear requirement to disclose fees. it seems rather confusing as to what they really want. has anyone ever had the opportunity to interpret that erisa reg?

[Harwood]

This sentence appears in DOL Reg 2520.102-3(l) [that's parenthesis letter L, not number one]:

"Plans also shall include a summary of any provisions that may result in the imposition of a fee or charge on a participant or beneficiary, or on an individual account thereof, the payment of which is a condition to the receipt of benefits under the plan."

I don't think it relates to investment fees.

[R. Butler]

alf, i read that cite and interestingly i have never seen it. i dont think it is a clear requirement to disclose fees. it seems rather confusing as to what they really want. has anyone ever had the opportunity to interpret that erisa reg?

We do interpret the reg. as requiring that some sort of disclosure be made in the SPD. Unlike in the prior post we do not see an exception for investment expenses. However, we do not interpret the reg. to require specificity. In all of our SPDs we include the exact broad statement contained in the Protoptype Plan & Trust. It basically provides for the possibility that almost any fee may be charged to the plan.