HR Administration

Explaining the Labor Department’s ERISA Regulations

By Patty Kujawa

Jul. 1, 2011

The Labor Department issued an interim final regulation July 16, 2010, which would require certain pension plan service providers to give detailed information on fees and possible conflicts of interest to plan sponsors.

On June 1, the Labor Department formally proposed to extend the effective date of this interim final regulation, known as Section 408(b)(2) of the 1974 Employee Retirement Income Security Act, to Jan. 1, 2012, from July 16, 2011. It is expected the rule will become final in late summer or early fall.

A second regulation, under Section 404(a) of the same federal pension law, was finalized in October 2010. It requires plan sponsors to give participants with self-directed accounts like 401(k)s, specific information on administrative and investment costs. This regulation starts for plan years beginning on or after Nov. 1. The June 1 notice proposed to change this rule’s 60-day transition provision to up to 120 days.

The department said in the June proposal that all these extensions should help service providers and plan sponsors comply with the requirements by these new effective dates.

An interim final rule is different from a final rule in that it asks for public comments and has the potential to change. In the example of the provider disclosure, the Labor Department signaled in February that it would extend the effective date to January 2012. Also, it carries the full weight of a final rule, and those affected are required to comply by its start date. Last, federal departments and agencies are allowed to modify a final rule, like in this case changing the compliance date with the participant disclosure regulation.

Workforce Management Online, July 2011Register Now!

Patty Kujawa is a freelance writer based in Milwaukee.

About Workforce.com

blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog

HR Administration

Policy management: What is it and what does it look like for HR?

Summary Policy management involves the creation and maintenance of administrative procedures and guidel...

hr policy, policy automation, policy management

workforce blog

Compliance

Minimum Wage by State in 2022 – All You Need to Know

Summary The federal minimum wage rate is $7.25, but the rate is higher in 30 states, along with Washing...

federal law, minimum wage, pay rates, state law, wage law compliance

workforce blog

HR Administration

Rest and lunch break laws in every US state

Summary Federal law does not require meal or rest breaks Some states have laws requiring meal and rest ...