An ERISA 404(c) plan puts investment decisions squarely in participants' hands by forcing clear, jargon-free fee and performance disclosures.
What’s Happening: ERISA 404(a) Compliance Gaps
ERISA 404(a) demands fiduciaries hand participants accurate fee statements at least once a year—or whenever fees move.
Since 2026, the DOL has been aggressively policing these rules, per their updated guidance. The usual slip-ups? Outdated 404(a)(5) fee charts or missing 408(b)(2) service-provider breakdowns. Miss the mark and you’re staring down penalties—or worse, a class-action suit.
Step-by-Step Solution
Run a four-step cleanup using your 2026 provider portal to fix disclosures fast.
- Access the Fee Disclosure Dashboard:
- Log into your sponsor portal.
- Drill down to Reports > Compliance > ERISA 404(a).
- Double-check the system is set to auto-build disclosures for active staff, with “Cycle Type” locked to Annual.
- Audit the Fee Data:
- Fire up the Plan Fee Audit Tool (under Tools > Fee Compliance).
- Make sure every fee—admin, investment, advisory—matches the latest 408(b)(2) provider statement dated within the last 60 days.
- Kick “orphaned” participants (ex-employees still on the mailing list) off the distribution list.
- Regenerate and Distribute Disclosures:
- Hit Regenerate Disclosures and pick 404(a)(5) Participant Fee Disclosure.
- Open the PDF in the portal viewer and confirm footnotes point to the right sources—e.g., “Investment fees from Fidelity Freedom Funds prospectus, 03/2026.”
- Schedule both email and paper delivery; the DOL still wants hard copies for anyone without digital access. Set the send date at least 30 days before any fee hikes take effect.
- Document Compliance:
- Save the disclosure PDF to Documents > ERISA Compliance > 2026 in the portal.
- Drop the distribution date in the portal’s audit trail for DOL audits.
