Clifford Chance

DOL Issues Final Regulations Under ERISA Section 408(b)(2)

22 February 2012

On February 3, 2012, the U.S. Department of Labor (“DOL”) published final regulations (the “Regulation”) under Section 408(b)(2) of the Employee Retirement Income Security Act of 1974 (“ERISA”) requiring disclosures of fees by certain service providers.

Under Section 408(b)(2) a “Covered Plan” (as described below) may enter into service contracts or arrangements with “covered service providers” to the extent that such contracts or arrangements are reasonable, the services are necessary for the establishment or operation of the plan, and no more than reasonable compensation is paid for such services. The Regulation provides that no otherwise covered arrangement is "reasonable" unless the disclosures required by the Regulation have been satisfied.

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