• Disclosure of Fees Received by Retirement Plan Service Providers
  • March 4, 2011
  • Law Firm: Harter Secrest Emery LLP - Rochester Office
  • In recent years, the compensation of retirement plan service providers has drawn an ever-increasing amount of attention. The Employee Retirement Income Security Act (ERISA) prohibits a plan's service provider from receiving compensation in excess of a "reasonable" amount for services rendered, and requires plan fiduciaries to select plan vendors in a prudent and well-informed fashion. However, as the financial marketplace and the retirement plan industry have grown more complicated and pioneered increasingly varied service and compensation arrangements, federal regulators have grown concerned that fiduciaries simply do not have access to the information they need to make informed choices.