EBSA semiannual regulatory agenda addresses rules on lifetime income, fiduciaries, fee disclosure, target date plans, abandoned plans

The Employee Benefits Security Administration (EBSA) has released its semiannual regulatory agenda for Spring 2013, which outlines regulations that have been selected for review or development during the next year.

Prerule stage

One item in EBSA’s prerule stage is an initiative under which the Labor Department will explore whether, and how, an individual benefit statement should and could present a participant’s accrued benefits in a defined contribution plan (i.e., the individual’s account balance) as a lifetime income stream of payments in addition to presenting the benefits as an account balance.

Proposed rule stage

Among the items in EBSA’s proposed rule stage are:

• An amendment to the regulatory definition of the term “fiduciary” to more broadly define as employee benefit plan fiduciaries persons who render investment advice to plans.

• An amendment to the ERISA §408(b)(2) disclosure provisions so that covered service providers may be required to furnish a guide or similar tool along with such disclosures.

Final rule stage

Among the items in EBSA’s final rule stage are:

• Rulemaking that, among other things, will enhance the information that must be disclosed concerning target date, or similar age-based, qualified default investment alternatives.

• A final rule, implementing the Pension Protection Act of 2006 (PPA; P.L. 109-280), requiring the administrator of a defined benefit pension plan to provide participants, beneficiaries, and other parties with an annual funding notice.

• Rulemaking that will examine whether, and how, to amend the “abandoned plan” regulations by expanding the scope of individuals entitled to be a “qualified termination administrator” (QTA).

Source: The EBSA Agenda for Spring 2013.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer’s Benefits Reports.

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