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Connecticut 403(b) Fee Disclosure Law to Take Effect Oct. 1

Connecticut Gov. Dannel Malloy (D) has signed HB 7161, a measure requiring disclosures by 403(b) plan administrators in Connecticut, into law.

Beginning Oct. 1, 2017, administrators of 403(b) plans run by political subdivisions in the Nutmeg State will have to disclose to the plan's fiduciary any conflict of interest the service provider has with the plan.

The law applies to any person (i.e., contract service provider (CSP)) that:

1. enters into a contract or agreement with a 403(b) plan not regulated under ERISA to provide services to the plan; and
2. reasonably expects to receive $1,000 or more in direct or indirect compensation for such services

The state Senate had passed the bill on June 7; the House had done so on May 2. The bill passed unanimously in both chambers.