ERIC Comment on DOL Participant Disclosure Regulation Final 9-8-08

The ERISA Industry Committee SUBMISSION OF THE ERISA INDUSTRY COMMITTEE TO THE EMPLOYEE BENEFITS SECURITY ADMINISTRATION U. S. DEPARTMENT OF LABOR COMMENTS ON PROPOSED REGULATION: DISCLOSURE REQUIREMENTS FOR PARTICIPANT-DIRECTED INDIVIDUAL ACCOUNT PLANS September 8, 2008 1400 L Street, N.W. Suite 350 Washington, DC 20005 Tel: (202) 789-1400 Fax: (202) 789-1120 www.eric.org Comments of The ERISA Industry Committee Page i September 8, 2008 Table of Contents ERIC’s Interest in the Proposed Regulation ........................................................ 1 Effective Date .............................................................................................................. 2 1. The regulation should not become effective earlier than 12 months after Department issues the final regulation. ......................................... 2 2. The Department should make clear that ERISA’s fiduciary provisions did not previously require disclosure. ..................................................... 4 Scope of Disclosure Requirement .......................................................................... 6 3. If a fiduciary fails to disclose required information, the fiduciary is liable under ERISA only for investment losses that are caused by the fiduciary’s breach of duty. ........................................................................ 6 4. A fiduciary should not be liable for erroneous information ...