408(b)(2) and PEOs

[Christine Roberts]

I am looking for sources of guidance on the 408(b)(2) fee disclosure regulation as it applies to a “traditional” multiple employer 401(k) plan, specifically a PEO arrangement.

A client has forwarded a fee disclosure packet from Transamerica that identifies itself as a disclosure for the “Principal Participating Employer”/MEP Sponsor (the PEO) and states that Transamerica is not a service provider to any Participating Employer. It also says that the PPE/MEP Sponsor can use the disclosure as a tool to comply with reporting duties for Participating employers but that the packet s not intended to satisfy those duties for Participating Employers.

I am wondering if data is even available from Transamerica or other providers, on the Participating Employer level.

If you have knowledge of any means by which the PPE could bridge the gap between the “umbrella” disclosure, and disclosures to each Participating Employer, I would appreciate your thoughts and comments.