Fee Disclosure Rules
NFW-3840AO, NFW-3847AO

Fee Disclosure Rules

Nationwide has a strong plan in place to help you and your clients comply with new retirement plan regulations. Let us put it to work for you.

The U.S. Department of Labor's two new regulations address fee disclosure − and will require action in 2012. They are:

  • ERISA 408(b)(2) Requires service providers to fully disclose to the plan fiduciary (usually the plan sponsor) information on fees, compensation and services provided to the plan. It also directs the plan fiduciary to review the fees for reasonableness and appropriateness.
  • ERISA 404(a)(5) Requires plan fiduciaries to communicate administrative, individual and investment-related expenses associated with the plan to eligible employees, plan participants and beneficiaries with the right to direct investments.

What this means for plan advisors

Under 408(b)(2), advisors must disclose information about their fees, compensation and services provided to the plan sponsor − some of which they may not have had to disclose in the past.

Under 404(a)(5), plan sponsors will need your help understanding their obligations as well as help providing fee and investment-related disclosures to employees.

What this means for plan sponsors

Under 408(b)(2), plan sponsors must review all services, fees and compensation information of service providers to determine if charges are reasonable and appropriate for their plan.

Under 404(a)(5), plan sponsors are required to communicate all plan fees to participants and send two annual participant disclosure documents that include:

  • Plan and fund-related information, plus quarterly statements
  • Showing administrative and individual expenses the participant actually incurred

How Nationwide can help with 408(b)(2)

Advisors can rely on Nationwide to:

  • Deliver your compensation information online
  • Provide a kit with templates to help communicate your firm's fees and services
  • Provide access to ERISA and regulatory information and a forum where you can ask questions of a regulatory specialist

Plan sponsors can rely on Nationwide to:

  • Provide a template form for advisor services disclosure. Read more
  • Provide disclosures in program agreements for new plans, or as an update to existing plans, including a description of fees and services, payor, payee and method of payment
  • Offer a web page containing disclosure information
  • Mail notifications of changes/corrections as required

How Nationwide can help with 404(a)(5)

Advisors and plan sponsors can rely on Nationwide to:

  • Provide participant disclosures for plan and investment-related fees
  • Email notifications to plan sponsors annually or whenever required
  • Include necessary fee disclosure on quarterly participant statements
  • Offer website access for non-participating, eligible employees to disclose required information
  • Provide a web page containing the information plan sponsors need to disclose to participants

We've got you covered

You can count on Nationwide to help you navigate the changing retirement plan regulatory landscape. For more information, call your Nationwide sales team at 1-800-626-3112.