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Release Date: 05/20/2003
Release Number: 03-19
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Washington, DC - The U.S. Department of
Labor’s Employee Benefits Security Administration today released Field
Assistance Bulletin (FAB) 2003-03 providing enforcement guidance to field
investigators on allocation of expenses among participants in a defined
contribution plan governed by the Employee Retirement Income Security Act
(ERISA). |
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The guidance indicates that plan sponsors and
fiduciaries have considerable discretion under ERISA to determine as a
matter of plan design or administration how expenses will be allocated
among participants and beneficiaries. The FAB concludes that a method of
allocating expenses set forth in a plan document, in effect, becomes part
of the benefit entitlements of the plan and fiduciaries generally will be
required to follow that determination. |
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When plan documents are silent or ambiguous, plan
fiduciaries must act prudently and solely in the interests of participants
in determining how to allocate expenses. These general principles apply to
methods of allocating expenses among participants in the plan as a whole
and allocating specific expenses to individual participants, rather than
the plan as a whole. The conclusions reached in the FAB supersede views
taken in Advisory Opinion No. 94-32A. |
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The FAB is part of the department’s ongoing
compliance assistance program to help employers, plan officials and
service providers and other comply with ERISA. Field Assistance Bulletins
are available on the Internet at www.dol.gov/ebsa. |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
