Required ERISA Compensation Disclosures
UNIGLOBAL® ERISA §408(b)(2) Disclosures
As of: October 1, 2019
Congratulations! You’re a Plan Sponsor. And as a sponsor of a retirement plan, you are providing your employees with a means to achieve a secure financial future for themselves. In addition to this, sponsoring a plan comes with several responsibilities that you or someone appointed by you must meet.
Such responsibilities include discretionary authority over the decisions about the plan’s management. Your decision making will include, among other things, selecting plan investments, investment options, and plan service providers (such as Uniglobal, a Covered Service Provider). Many of your decisions will require you to understand and evaluate the costs to the plan.
ERISA, the Federal law governing private-sector retirement plans, requires that those responsible for managing retirement plans — referred to as fiduciaries — carry out their responsibilities prudently and solely in the interest of the plan’s participants and beneficiaries. Plan fiduciaries have a responsibility to ensure that the services provided are necessary and that the cost of those services is reasonable.
What is an ERISA §408(b)(2) Disclosure?
The ERISA §408(b)(2) Disclosure, Fee Disclosure, or Compensation Disclosure, as commonly referred to, is an obligation and requirement of a plan service provider to ensure that responsible plan fiduciaries are provided the information they need to make better decisions about the services and costs associated with services provided by plan service providers.
What is a Covered Service Provider (CSP)?
Covered Service Provider or CSP for short, for purposes of the 408(b)(2) regulation, is a service provider (providing fiduciary and/or non-fiduciary services) that enters into a contract or arrangement with the covered plan and reasonably expects $1,000 or more in compensation, direct or indirect, to be received in connection with providing one or more of the services described in paragraphs (c)(1)(iii)(A), (B), or (C) of the regulation (29 CFR 2550.408b-2(c)) pursuant to the contract or arrangement, regardless of whether such services will be performed, or such compensation received, by the covered service provider, an affiliate, or a subcontractor.
§408(b)(2) Disclosures for Uniglobal by Record-Keeper
- American Funds
- Empower Retirement
- John Hancock
- Nationwide Financial
- Principal Financial
- Transamerica Retirement
- Voya Financial
Our Compliance with Section 408(b)(2)
Uniglobal is committed to providing outstanding support and service to its plan sponsor clients in the areas of consulting, administration, and most importantly compliance. The Services described and to be provided, as listed in a Service Order, together with the Terms, and the Record-Keeper specific disclosures on our Site, constitute our compliance with the final regulation relating to service provider disclosures under section 408(b)(2).