Westminster Consulting Brochure Defined Contribution & Defined Benefit | Page 12

Action step checklist
for plan sponsors under ERISA section 408(b)(2)

Critical action steps to be executed by plan sponsor:
Identify the plan’s covered service providers.
Covered providers generally include fiduciary investment managers and advisors, plan
recordkeepers, broker/dealers, and providers receiving “indirect” compensation.

Confirm delivery of existing providers’ 408(b)(2) disclosures.
Contact each of the plan’s existing covered providers to confirm that the required
408(b)(2) disclosures will be provided.

Confirm annual delivery of disclosures for plan’s investment options.

The plan’s record keeper must deliver updated fee and expense information for each of
the plan’s investment options. Confirm updated disclosures will be provided annually.

Review adequacy of providers’ 408(b)(2) disclosures.
Confirm the following required elements are described in each provider’s disclosures:
• Services
• Direct and indirect compensation
• Fees upon termination of services
• Status as a fiduciary (if applicable)
• Compensation for subcontractors (if applicable)
• Method of payment

Request missing info from any provider with a disclosure failure.
If a provider fails to deliver its closures by the appropriate date, or if the disclosures are inadequate, send a written
request to the provider immediately for any missing information.

Report disclosure failure if provider refuses to provide missing info.
If the provider refuses or fails to reply to a written request for missing information within 90 days, report the disclosure
failure to the DOL with the assistance of counsel.

Consider terminating provider’s services if disclosure failure occurs.
Consider the prudence of continuing the provider’s services if a disclosure failure has occurred. If reported to the DOL,
terminate the arrangement immediately if it relates to future services.

Obtain and review 408(b)(2) disclosures from any new provider.
With respect to any new provider or any existing provider extending its services, review the provider’s 408(b)(2)
disclosures reasonably in advance of making any service decisions.

Use a prudent review process or engage an outside expert to evaluate provider’s services and fees.
Review all disclosures and evaluate the provider’s services and fees on an ongoing basis in accordance with a prudent
review process.

Review any changes and updates to 408(b)(2) disclosures.
Take into account any relevant changes made by a provider to its 408(b)(2) disclosures when evaluating the provider’s
services and fees.
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