Department of Labor Issues New Guidance on Broker Compensation Disclosure

January 3, 2022

On December 30th, The Department of Labor (DOL) issued new guidance via a Field Assistance Bulletin Field Assistance Bulletin No. 2021-03 | U.S. Department of Labor ( regarding their enforcement policy of the Broker Compensation Disclosure under ERISA section 408(b)(2)(B). Section 202 of Title II of Division BB of the Consolidated Appropriations Act.

The new disclosure requirements apply to persons who provide “brokerage services” or “consulting” to ERISA-covered group health plans who reasonably expect to receive $1,000 or more in direct or indirect compensation in connection with providing those services.

The required disclosures are intended to provide the responsible plan fiduciary with sufficient information to assess the reasonableness of the compensation to be received and potential conflicts of interest that may exist because of a covered service provider receiving indirect compensation from sources other than the plan or the plan sponsor. 

Among the more interesting items in the new guidance is that the DOL is not issuing any more regulatory guidance for the time being. In addition, the bulletin addresses the following:

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