The Department of Labor’s 2012 final rule to improve transparency of fees and expenses includes a requirement that information be provided to participants that allows them to compare investment options.
The Comparative Format Requirement provides that investment-related information must be furnished to participants or beneficiaries on or before the date they can first direct their investments, and then again annually thereafter.
The Comparative Format Requirement provides that investment-related information must be furnished to participants or beneficiaries on or before the date they can first direct their investments, and then again annually thereafter.
That information also must be furnished in a chart or similar format designed to facilitate a comparison of each investment option available under the plan.
An appendix to the final rule a model comparative chart, which when correctly completed, plan administrators may use to satisfy the rule’s requirement that a plan’s investment option information be provided in a comparative format.
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