Are You Ready for 408(b)(2) Disclosures?
Department of Labor Disclosure Regulations are a Minefield for Plan Sponsors
Yes, a minefield! And, here at Atéssa we’ve been working hard to determine the effects that these new Department of Labor disclosure requirements will have on you. As a plan sponsor, you will be on both the receiving and distributing end of these disclosures. Our advice to our clients is get out in front of these disclosures, quickly and decisively.
We are already working with a number of our clients to execute those critical near-term steps, which need to be a high priority at every company sponsoring a plan with participant-directed investment accounts:
- Systematically collect data from service providers to the plan in a way that is easily transferable to both your Forms 5500 and to participants.
- Evaluate the fees you are paying today from plan assets and whether they are reasonable and necessary in light of services provided.
- Develop and flawlessly execute a well-thought-out communication strategy that anticipates and proactively responds to participant questions and concerns before compliance deadlines.
- Understand your fiduciary strengths and weaknesses, and protect yourself from liability by prioritizing areas of vulnerability and implementing a prudent plan management and fiduciary governance process that incorporates best practices for plan sponsors.
Your best defense is a good offense when it comes to increased scrutiny from the government, plan participants, the media, and litigious attorneys. We urge you not to wait to take action. Some of these steps can take time to properly execute, and a last-minute scramble to comply exposes you to additional risk.
Atéssa can help you navigate these new disclosure and reporting requirements. We’ve developed a Fiduciary Preparedness Checklist for you… your step-by-step blueprint for successfully preparing for you disclosures.
For your copy, simply tell us what email account to send it to in the form to the right.