Service Provider Disclosure Rules (ERISA § 408(b)(2))
Summary
This practice note describes the disclosures (referred to here as 408(b)(2) disclosures) that most service providers must provide to fiduciaries of defined benefit and defined contribution retirement plans and, as of December 27, 2021, group health plans, covered by the Employee Retirement Income Security Act (ERISA). Plan fiduciaries are required to collect and review this data to comply with the statutory exemption to ERISA's prohibited transaction rules for reasonable service provider arrangements under ERISA § 408(b)(2) (29 U.S.C. § 1108(b)(2)). This summary will assist benefits counsel and in-house attorneys who advise ERISA plan fiduciaries and ERISA plan service providers on how to fulfil their obligations under these disclosure rules.