DOL Reasonable Contract or Arrangement Under Section 408(b)(2) of ERISA

SIFMA provides comments to the Employee Security Benefits Administration (EBSA) of the U.S. Department of Labor (DOL) on the interim final regulations regarding reasonable contract or arrangement under section 408(b)(2) of the Employee Retirement Income Security Act of 1974 (ERISA).  The regulation would redefine what constitutes a “reasonable contract or arrangement” for purposes of the statutory exemption in Section 408(b)(2) of ERISA from certain prohibited transaction provisions of the statute.

SIFMA believes the interim final rule represents a more balanced approach to fee disclosure.  As DOL finalizes the regulation, however, SIFMA requests that the final rule provide for greater flexibility and coordination with other disclosure regimes that DOL and other federal and state agencies oversee.  In addition, SIFMA believes that it is very important for DOL to provide a longer window of time to comply with the regulation.