A large majority of workers do not keep track of the federal regulations that govern HR compliance and employee benefits. After all, it is the responsibility of human resources to digest any new information and broadcast it to anyone who might be affected by official changes. The U.S. government regulates every type of employee benefits, anything from health care plans to 401(k) accounts. However, the latter retirement option is facing some important changes in the upcoming months that everyone needs to be aware of.
July 1st is an important deadline for 401(k) service providers. The United States Department of Labor's (DOL) Employee Benefits Service Administration (EBSA) recently extended the date for employee benefits companies to adhere to rule 4089(b)(2). The new regulation states that information must be sent to the DOL on pension plan fiduciaries that will evaluate the accuracy of paid compensation and any conflicts of interest. If companies do not meet this deadline, their employees will be paying the cost in terms of higher plan fees.
According to AdvisorOne, the EBSA said the final rule "requires disclosures of direct and indirect compensation certain service providers receive in connection with the services they provide. The rule applies to those service providers that expect to receive $1,000 or more in compensation and provide certain fiduciary or registered investment advisory services, make available plan investment options in connection with brokerage or recordkeeping services, or otherwise receive indirect compensation for providing certain services to a plan."
In order to ensure that your company is in full HR compliance, you should enlist the assistance of HR consulting services. These professionals can give you up-to-date information on any new legal requirements.
