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NEWS RELEASE
March 31, 2008
Council recommends numerous changes to proposed plan fee disclosure regulationsWASHINGTON, D.C. — “The American Benefits Council’s goal, and the goal of all employer plan sponsors, is the creation and maintenance of an effective and fair employee benefits system that functions in a transparent manner and provides meaningful benefits at a fair price – in terms of both fees and other expenses,” said Robert G. Chambers, a partner in the Charlotte, North Carolina law firm of Helms Mulliss & Wicker* and past chair of the American Benefits Council board of directors. Testifying on the Council’s behalf before the U.S. Department of Labor (DOL) in today’s hearing on proposed plan fee regulations, Chambers urged the agency to consider improvements that would help employers transition to the new rules.Chambers' testimony generally echoed the Council’s February 11 comment letter to DOL on this topic. In his statement before the agency, Chambers highlighted several important topics, including: Scope of the regulation: "As drafted, the proposed regulation would apply broadly to defined contribution plans, defined benefit plans, and health and welfare plans," Chambers said. "We urge you to finalize the proposed regulations in three separate components - first defined contribution plan disclosure, then defined benefit plan disclosure, and finally health and welfare plan disclosure. Any attempt to bring all three types of plans into compliance at the same time, especially in the breakneck fashion contemplated in the proposed regulations, will fail." Effective Date: "The 90-day time period after the publication of final regulations is simply not sufficient for service providers because the rule, as proposed, would require significant modifications to computer systems, staff training and the preparation of new communications, administrative materials and disclosure documents. This work is in addition to the modification and renegotiation of agreements with plan fiduciaries and other service providers," Chambers said. "The Council recommends that the final regulation be generally effective for new service contracts and material modifications of existing service contracts entered into either on or after the first day of the year beginning at least 12 months following publication of final regulations." Chambers concluded, "it would be in everyone’s best interest if there is time to facilitate an orderly transition." *Beginning April 1, Chambers will be a partner with the law firm of McGuireWoods, with which Helms Mulliss & Wicker is merging. To arrange an interview with a Council staff member, please contact Jason Hammersla, Council director, communications, at jhammersla@abcstaff.org or by phone at (202) 289-6700.
The American Benefits Council is the national trade association for companies concerned about federal legislation and regulations affecting all aspects of the employee benefits system. The Council’s members represent the entire spectrum of the private employee benefits community and either sponsor directly or administer retirement and health plans covering more than 100 million Americans.
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