Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Rules and Regulations 14301 

1 29 CFR 2550.404a–5; 75 FR 64910. 

2 29 CFR 2550.404a–5(h)(1). 

3The specified applicability date was 

subsequently delayed by amendment published on 

July 19, 2011. 76 FR 42539. Under the amendment, 

the initial disclosures required on or before the date 

on which a participant or beneficiary can first direct 

his or her investments must be furnished no later 

than the later of 60 days after such applicability 

date or 60 days after the effective date of 29 CFR 

2550.408b–2(c). 29 CFR 2550.404a–5(j)(3)(i)(A). 

4FAB 2012–02R supersedes FAB 2012–02 issued 

on May 7, 2012. Changes in the superseding 

bulletin did not affect Question 35. 

be approximately 5 minutes per response, 

including the time for reviewing instructions, 

completing and reviewing the collection of 

information. All responses to this collection 

of information are mandatory. Comments 

concerning the accuracy of this burden and 

suggestions for reducing the burden should 

be directed to the FAA at: 800 Independence 

Ave. SW., Washington, DC 20591, Attn: 

Information Collection Clearance Officer, 

AES–200. 

(h) Related Information 

Refer to MCAI European Aviation Safety 

Agency (EASA) AD No.: 2014–0246, dated 

November 12, 2014; and Shorts Service 

Bulletin Number 32–74, dated November 1, 

2014, for related information. The MCAI can 

be found in the AD docket on the Internet at: 

http://www.regulations.gov/

#!documentDetail;D=FAA-2014-1001-0002. 

For Short Brothers & Harland Ltd. service 

information identified in this AD, contact 

Airworthiness, Short Brothers PLC, P.O. Box 

241, Airport Road, Belfast, BT3 9DZ Northern 

Ireland, United Kingdom; phone: +44–2890– 

462469, fax: 44–2890–733647, email: 

michael.mulholland@aero.bombardier.com, 

internet: None. 

(i) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) SAFRAN Messier-Buggatti-Dowty 

Service Bulletin No. 32–17M, dated 

November 1, 2014. 

(ii) Reserved. 

(3) For SAFRAN Messier-Buggatti-Dowty 

service information identified in this AD, 

contact Messier-Dowty Limited, Cheltenham 

Road, Gloucester GL2 9QH, ENGLAND; 

phone: +44(0)1452 712424; fax: +44(0)1452 

713821; email: americacsc@safranmbd.com, 

Internet: http://www.safranmbd.com. 

(4) You may view this service information 

at the FAA, Small Airplane Directorate, 901 

Locust, Kansas City, Missouri 64106. For 

information on the availability of this 

material at the FAA, call (816) 329–4148. In 

addition, you can access this service 

information on the Internet at http://

www.regulations.gov by searching for and 

locating Docket No. FAA–2014–1001. 

(6) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Kansas City, Missouri, on March 

11, 2015. 

Robert Busto, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2015–06235 Filed 3–18–15; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR Part 2550 

RIN 1210–AB68 

Fiduciary Requirements for Disclosure 

in Participant-Directed Individual 

Account Plans—Timing of Annual 

Disclosure 

AGENCY: Employee Benefits Security 

Administration, Department of Labor. 

ACTION: Direct final rule. 

SUMMARY: This direct final rule amends 

the Department of Labor’s ‘‘participantlevel fee disclosure’’ regulation. The 

amendment makes a technical 

adjustment to a timing requirement in 

the current regulation. As amended, the 

regulation provides plan administrators 

with flexibility as to when they must 

furnish annual disclosures to 

participants and beneficiaries. 

DATES: Effective date: This rule is 

effective June 17, 2015, without further 

action or notice, unless significant 

adverse comment is received by April 

20, 2015. If significant adverse comment 

is received, the Employee Benefits 

Security Administration (EBSA) will 

publish a timely withdrawal of the rule 

in the Federal Register. 

Applicability date: The amendment is 

applicable to disclosures made on or 

after June 17, 2015. 

ADDRESSES: You may submit comments, 

identified by RIN 1210–AB68, by one of 

the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: e-ORI@dol.gov. Include RIN 

1210–AB68 in the subject line of the 

message. 

• Mail or personal delivery: Office of 

Regulations and Interpretations, 

Employee Benefits Security 

Administration, Room N–5655, U.S. 

Department of Labor, 200 Constitution 

Avenue NW., Washington, DC 20210. 

Instructions: All submissions received 

must include the agency name and 

Regulation Identifier Number (RIN) for 

this rulemaking. Comments received, 

including any personal information 

provided, will be posted without change 

to http://www.regulations.gov and 

http://www.dol.gov/ebsa, and made 

available for public inspection at the 

Public Disclosure Room, N–1513, 

Employee Benefits Security 

Administration, 200 Constitution 

Avenue NW., Washington, DC 20210. 

Persons submitting comments 

electronically are encouraged not to 

submit paper copies. 

FOR FURTHER INFORMATION CONTACT: Eric 

A. Raps, Office of Regulations and 

Interpretations, Employee Benefits 

Security Administration, Department of 

Labor, at (202) 693–8532. This is not a 

toll-free number. 

SUPPLEMENTARY INFORMATION: 

In General 

On October 20, 2010, the Department 

of Labor (Department) published a final 

regulation requiring plan administrators 

to disclose certain plan and investmentrelated information, including fee and 

expense information, to participants and 

beneficiaries in participant-directed 

individual account plans.1 The 

regulation requires certain information 

to be furnished on or before the date on 

which a participant can first direct his 

or her investments and ‘‘at least 

annually thereafter.’’ The regulation 

defines this term as ‘‘at least once in any 

12-month period, without regard to 

whether the plan operates on a calendar 

or fiscal year basis.’’ 2 The regulation 

was effective on December 20, 2010, but 

was not applicable until plan years 

beginning on or after November 1, 

2011.3

On July 30, 2012, the Department’s 

Employee Benefits Security 

Administration (EBSA) issued Field 

Assistance Bulletin 2012–02R (FAB 

2012–02R) providing guidance on 

frequently asked questions. Q&A 35 

clarified that, for most plans, including 

calendar year plans, the first initial 

disclosures under the new regulation 

were required no later than August 30, 

2012. FAB 2012–02R did not, however, 

specifically address the deadline for 

subsequent annual disclosures.4

In Field Assistance Bulletin 2013–02, 

issued July 22, 2013, the Department 

made clear that the regulation requires 

annual disclosures to be made no more 

than one year exactly (e.g., 365 days) 

after the prior annual disclosures. 

Specifically, FAB 2013–02, in relevant 

part, states ‘‘[f]or example, a plan 

administrator that furnished the first 

required chart on August 25, 2012, must 

furnish the next comparative chart no 


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5FAB 2013–02 also provided a one-time ‘‘re-set’’ 

opportunity under which EBSA, as an enforcement 

matter, would treat a plan administrator as 

satisfying the ‘‘at least annually thereafter’’ 

requirement of the regulation if the administrator 

furnished certain annual disclosures no later than 

18 months from the prior annual disclosures. This 

temporary relief was granted to plan administrators 

so that the annual deadline for furnishing 

comparative charts and other annual disclosures 

under the regulation could be aligned with the 

furnishing of other participant notices and 

disclosures. FAB 2013–02 is not affected by the 

direct final regulation. Thus, to the extent it is 

otherwise available, an administrator does not lose 

the re-set relief in FAB 2013–02 for the second 

annual disclosure (described as the ‘‘2014 

comparative chart’’ in FAB 2013–02) as a result of 

the direct final regulation. 

6The ‘‘at least quarterly’’ timing requirement in 

paragraph (h)(2) applies to disclosures detailing 

later than August 25, 2013.’’ This 

interpretation was intended to prevent 

inconsistencies, delays, and possible 

manipulation of the timing of annual 

disclosures. It also was responsive to the 

views expressed by some plan 

administrators, which contrary to 

EBSA’s intent, interpreted ‘‘at least once 

in any 12-month period’’ to allow the 

furnishing of the annual disclosures, for 

example, on January 1 of one year and 

December 31 of the following year, thus 

allowing for approximately 24 months 

in between disclosures. At the same 

time, however, EBSA was concerned 

that the requirement that disclosures be 

made no more than one year exactly 

from the prior annual disclosures (as 

interpreted in FAB 2013–02) might 

impose undue administrative burdens 

on plans. Consequently, FAB 2013–02 

solicited public comments on whether 

EBSA should amend the regulation to 

provide plan administrators with more 

flexibility as to when they must furnish 

the annual disclosures.5 For example, 

instead of a permanently fixed annual 

deadline set at one year exactly from the 

last annual disclosure, EBSA requested 

comments on whether the deadline 

should have some degree of elasticity, 

such as a 30-day or 45-day window from 

the one-year anniversary of the last 

annual disclosure. 

The Department received comments 

from several organizations representing 

employers, plans, recordkeepers and 

other service providers who furnish 

annual disclosures to participants and 

beneficiaries on behalf of plan 

administrators. These commenters 

raised multiple practical and logistical 

concerns about the current definition. 

For instance, the commenters 

maintain that the current definition may 

prevent them from consolidating the 

annual disclosures under the regulation 

with other annual plan disclosures. One 

commenter stated ‘‘many plan sponsors 

and service providers try, where 

possible, to consolidate participant 

communications in a way that ensures 

effective disclosures and avoids 

overloading participants with 

information too frequently.’’ On this 

point, a different commenter observed 

‘‘it is helpful for employers to have a 

flexible deadline in case they need to 

change the dates of their annual 

enrollment periods or other annual 

plan-related mailings. A 45-day window 

would provide them with the flexibility 

to timely provide the annual disclosures 

to participants without concern that 

they may miss the deadline.’’ 

Another concern raised by the 

commenters is that the current 

definition requires them to track the 

specific date of annual disclosures on a 

plan-by-plan or participant-byparticipant basis, even though large 

recordkeepers may have responsibility 

for tens of thousands of plan clients and 

millions of plan participants. The 

commenters also maintain that the 

current definition is a disincentive or 

punishment to plans that provide early 

disclosures in a given year. The 

commenters also maintain that certain 

investment information needed on a 

comparative chart, such as a designated 

investment alternative’s 1-year, 5-year, 

and 10-year performance, often comes 

from different investment vendors and 

may not always be predictably delivered 

and consolidated by the 12-month 

anniversary deadline. 

Each of these concerns stems from the 

fact that the furnishing of a required 

annual disclosure before the expiration 

of the 12-month deadline (365th day) in 

any year necessarily changes and 

accelerates the deadline for subsequent 

plan years (i.e., the deadline ‘‘creeps’’ 

forward for all future years when there 

is early compliance during the current 

year). One commenter, for example, 

stated ‘‘the requested flexibility 

mitigates the incentive that plan 

sponsors and service providers may 

have to delay furnishing the materials 

when they may otherwise be able to 

send them sooner, in order to avoid 

accelerating subsequent compliance 

deadlines.’’ The commenters 

overwhelmingly support a regulatory 

amendment that provides some 

flexibility as to the timing of annual 

disclosures. A reasonable interpretation 

of their comments is that they support 

a buffer zone of no less than 45 days, 

and that such flexibility would abate the 

concerns mentioned above. Commenters 

also identified special or irregular 

events that warrant flexibility, including 

corporate mergers and changes in 

recordkeepers, investment lineups, plan 

years (e.g., from fiscal to calendar year), 

or law. 

No commenter objected to giving plan 

administrators some flexibility, or 

suggested that flexibility would harm 

participants and beneficiaries or hinder 

their ability to direct their investments. 

Two commenters, in fact, suggested just 

the opposite. One of them observed that 

‘‘[r]esolving this concern will also 

benefit plan participants because it will 

facilitate expedited furnishing of the 

materials when it is feasible for 

providers and plan sponsors to do so.’’ 

The other observed ‘‘it is common for 

plans to periodically change the menu 

of investment options available to 

participants and, in such circumstances, 

a plan may find it helpful to slightly 

delay distribution of an otherwise due 

comparative chart until the new 

investment options are set.’’ 

The overall objective of the 

‘‘participant-level fee disclosure’’ 

regulation is to make sure participants 

and beneficiaries in participant-directed 

individual account plans are furnished 

the information they need, on a regular 

and periodic basis, to make informed 

decisions about the management of their 

individual accounts and the investment 

of their retirement savings. While 

deadlines are needed to avoid irregular 

and non-periodic disclosures, flexible 

deadlines alone do not undermine the 

overall objective of the regulation. 

Based on the foregoing, the 

Department has decided to replace the 

definition contained in paragraph (h)(1) 

of the current regulation with a new 

definition that provides a buffer 

requested by the commenters. The 

current regulatory language states that 

the term at least annually thereafter 

‘‘means at least once in any 12-month 

period, without regard to whether the 

plan operates on a calendar or fiscal 

year basis.’’ Today’s direct final rule 

replaces ‘‘12-month period’’ with ‘‘14- 

month period.’’ Thus, the definition, as 

amended by this rulemaking, states that 

the term at least annually thereafter 

‘‘means at least once in any 14-month 

period, without regard to whether the 

plan operates on a calendar year or 

fiscal year basis.’’ It is the Department’s 

view that this definition achieves the 

correct balance by ensuring that 

participants and beneficiaries will 

receive annual disclosures on a 

consistent and regular basis, and 

without unwarranted delays in-between 

disclosures, while at the same time 

offering plan administrators some 

flexibility. 

The Department also requests 

comments on whether a similar 

adjustment is needed for the ‘‘at least 

quarterly’’ definition in paragraph (h)(2) 

of the regulation.6 Today’s direct final 


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Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Rules and Regulations 14303 

administrative and individual expenses ‘‘actually 

charged’’ to individual accounts. 

rule has no effect on the definition 

contained in paragraph (h)(2). No 

commenter identified problems with 

this definition or requested an 

adjustment similar to the adjustment 

being made to the ‘‘at least annually’’ 

definition. Consequently, the 

Department today has no basis to make 

any change to this definition. The lack 

of comment on this definition may be 

due, in whole or in part, to EBSA Field 

Assistance Bulletin 2006–03 (providing 

a 45-day window for furnishing 

quarterly pension benefit statements 

required under section 105 of ERISA) 

and paragraph (e)(2) of 29 CFR 

2550.404a–5 (which allows quarterly fee 

disclosures to be furnished with 

quarterly pension benefit statements). 

Commenters are encouraged to consider 

FAB 2006–03 if making a comment. 

Temporary Enforcement Policy 

The Department is adopting an 

enforcement policy, effective 

immediately, under which plan 

administrators may rely on the new 

definition in paragraph (h)(1) prior to 

the effective date of the amendment. 

Some plans may be preparing their next 

set of annual disclosures, which may be 

due before the effective date of the 

amendment. Accordingly, EBSA, as an 

enforcement matter, will treat a plan 

administrator as satisfying the timing 

requirement in paragraph (h)(1) of the 

regulation if the plan administrator 

complies with the new definition 

establishing a 2-month grace period for 

annual disclosures, provided that the 

plan administrator reasonably 

determines that doing so will benefit 

participants and beneficiaries. This 

enforcement policy expires on the 

effective date of the direct final rule 

without notice or any other action by 

the Department. If the direct final rule 

is withdrawn because of significant 

adverse comment, EBSA will provide 

further guidance on this enforcement 

policy in the Federal Register notice 

announcing the withdrawal of the rule. 

The relief under this policy is in 

addition to the relief previously granted 

under FAB 2013–02 and is available 

regardless of whether a plan has used 

the relief in such FAB 2013–02 to reset 

the first or second applicable annual 

disclosure. 

Good Cause Finding That Proposed 

Rulemaking Unnecessary 

Rulemaking under section 553 of the 

Administrative Procedure Act (5 U.S.C. 

551 et seq.) ordinarily involves 

publication of a notice of proposed 

rulemaking in the Federal Register and 

provides the public with the 

opportunity to comment on the 

proposed rule. However, an agency may 

issue a rule without prior notice and 

comment if it determines for good cause 

that prior notice and comment is 

impracticable, unnecessary, or contrary 

to the public interest. 

The Department finds it unnecessary 

to publish a notice of proposed 

rulemaking. The Department, in FAB 

2013–02, already solicited public 

comment on the issue of flexible timing 

for annual disclosures. Additional 

notice and comment is not likely to 

change the Department’s conclusion 

that there is a need for greater 

flexibility, but it will delay the relief 

sought by the affected parties. Such 

delay also makes ordinary notice and 

comment procedures impracticable for 

those plan administrators who would 

benefit from the new definition in 

paragraph (h)(1) in connection with 

disclosures that must be furnished in 

the early part of 2015. 

The Department is concurrently 

publishing a notice of proposed 

rulemaking in the ‘‘Proposed Rules’’ 

section of today’s Federal Register that 

will serve as a notice of proposal to 

amend part 2550 as described in this 

direct final rule. If the Department 

receives significant adverse comment 

during the comment period, it will 

withdraw this direct final rule. The 

Department will then address public 

comments in a subsequent final rule. 

The Department does not intend to 

institute a second comment period on 

this rule. Any parties interested in 

commenting must do so during this 

comment period. 

Regulatory Impact Analysis 

Executive Orders 12866 

Executive Orders 12866 and 13563 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. 

Section 3(f) of Executive Order 12866 

defines a ‘‘significant regulatory action’’ 

as an action that is likely to result in a 

rule (1) Having an annual effect on the 

economy of $100 million or more, or 

adversely and materially affecting a 

sector of the economy, productivity, 

competition, jobs, the environment, 

public health or safety, or State, local or 

tribal governments or communities (also 

referred to as ‘‘economically 

significant’’); (2) creating serious 

inconsistency or otherwise interfering 

with an action taken or planned by 

another agency; (3) materially altering 

the budgetary impacts of entitlement 

grants, user fees, or loan programs or the 

rights and obligations of recipients 

thereof; or (4) raising novel legal or 

policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. Pursuant to the terms of the 

Executive Order, OMB has determined 

that this regulatory action is significant 

within the meaning of section 3(f)(4) of 

the Executive Order, and therefore it 

will be reviewed by OMB. As discussed 

in the Paperwork Reduction Act section 

below, the Department expects this 

amendment to benefit plan 

administrators by providing flexibility 

when the annual disclosures are 

furnished with no additional cost 

impact. 

Regulatory Flexibility Analysis 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) (RFA) imposes 

certain requirements with respect to 

Federal rules that are subject to the 

notice and comment requirements of 

section 553(b) of the APA (5 U.S.C. 551 

et seq.) and that are likely to have a 

significant economic impact on a 

substantial number of small entities. 

Under Section 553(b) of the APA, a 

general notice of proposed rulemaking 

is not required when an agency, for 

good cause, finds that notice and public 

comment thereon are impracticable, 

unnecessary, or contrary to the public 

interest. This direct final regulation is 

exempt from the APA’s notice and 

comment requirements because the 

Department made a good cause finding 

earlier in this preamble that a general 

notice of proposed rulemaking is not 

necessary. Therefore, the RFA does not 

apply and the Department is not 

required to either certify that this 

regulation would not have a significant 

economic impact on a substantial 

number of small entities or conduct a 

regulatory flexibility analysis. 

Paperwork Reduction Act 

As part of its continuing effort to 

reduce paperwork and respondent 

burden, the Department of Labor 

conducts a preclearance consultation 

program to provide the general public 

and federal agencies with an 

opportunity to comment on proposed 

and continuing collections of 

information in accordance with the 


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14304 Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Rules and Regulations 

Paperwork Reduction Act of 1995 (PRA) 

(44 U.S.C. 3506(c)(2)(A)). This helps to 

ensure that requested data can be 

provided in the desired format, 

reporting burden (time and financial 

resources) is minimized, collection 

instruments are clearly understood, and 

the impact of collection requirements on 

respondents can be properly assessed. 

In accordance with the requirements 

of the PRA (44 U.S.C. 3506(c)(2)), the 

Department submitted an information 

collection request (ICR) to OMB in 

accordance with 44 U.S.C. 3507(d) for 

the current rule that was published on 

October 20, 2010. The information 

collection request was approved by 

OMB on October 5, 2010, under OMB 

Control Number 1210–0090, which 

currently is scheduled to expire on 

April 30, 2017. 

Currently, the Department has 

submitted an information collection for 

the ICR as revised by the direct final 

rule under the emergency procedures 

for review and clearance contained in 5 

CFR 1320.13. A copy of the ICR may be 

obtained by contacting the PRA 

addressee shown below. The 

Department is hereby soliciting 

comments concerning the revision to 

the ICR currently approved under OMB 

Control Number 1210–0090. The 

Department and OMB are interested 

particularly in comments that: 

• Evaluate whether the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

• Evaluate the accuracy of the 

agency’s estimate of the burden of the 

collection of information, including the 

validity of the methodology and 

assumptions used; 

• Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

• Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

Comments should be sent to the PRA 

Addressee within the same 30-day 

comment period that applies for 

comments on the direct final rule. Any 

comments received will be considered 

when the Department submits an 

extension request for the emergency ICR 

to OMB. 

PRA Addressee: Address requests for 

copies of the ICR to G. Christopher 

Cosby, Office of Policy and Research, 

U.S. Department of Labor, Employee 

Benefits Security Administration, 200 

Constitution Avenue NW., Room N– 

5718, Washington, DC 20210. 

Telephone (202) 693–8410; Fax: (202) 

219–5333. These are not toll-free 

numbers. ICRs submitted to OMB also 

are available at http://www.RegInfo.gov. 

The Department expects this 

amendment to have no impact on the 

cost or hour burden associated with the 

ICR, because it solely determines when 

the disclosures are distributed but does 

not affect the content of the disclosures. 

The timing flexibility provided by the 

amendment will benefit plan 

administrators by allowing them to 

combine and distribute annual 

disclosures with other employment and 

annual employee benefits 

communication materials, which may 

result a small decrease in burden; 

however, the Department does not have 

sufficient data to estimate this decrease. 

The Department welcomes comments 

regarding this assessment. 

Congressional Review Act 

This direct final rule is subject to the 

Congressional Review Act provisions of 

the Small Business Regulatory 

Enforcement Fairness Act of 1996 (5 

U.S.C. 801 et seq.) and will be 

transmitted to Congress and the 

Comptroller General for review. 

Unfunded Mandates Reform Act 

For purposes of the Unfunded 

Mandates Reform Act of 1995 (Pub. L. 

104–4), as well as Executive Order 

12875, the direct final rule does not 

include any Federal mandate that may 

result in expenditures by State, local, or 

tribal governments in the aggregate of 

more than $100 million, adjusted for 

inflation, or increase expenditures by 

the private sector of more than $100 

million, adjusted for inflation. 

Federalism Statement 

Executive Order 13132 (August 4, 

1999) outlines fundamental principles 

of federalism, and requires the 

adherence to specific criteria by Federal 

agencies in the process of their 

formulation and implementation of 

policies that have substantial direct 

effects on the States, the relationship 

between the national government and 

States, or on the distribution of power 

and responsibilities among the various 

levels of government. The direct final 

rule does not have federalism 

implications because it has no 

substantial direct effect on the States, on 

the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Section 514 of 

ERISA provides, with certain exceptions 

specifically enumerated, that the 

provisions of Titles I and IV of ERISA 

supersede any and all laws of the States 

as they relate to any employee benefit 

plan covered under ERISA. 

List of Subjects in 29 CFR Part 2550 

Employee benefit plans, Fiduciaries, 

Pensions, Disclosure. 

For the reasons set forth in the 

preamble, the Department is amending 

Subchapter F, Part 2550 of Title 29 of 

the Code of Federal Regulations as 

follows: 

PART 2550—RULES AND 

REGULATIONS FOR FIDUCIARY 

RESPONSIBILITY 

■ 1. The authority citation for part 2550 

is revised to read as follows: 

Authority: 29 U.S.C. 1135 and Secretary 

of Labor’s Order No. 1–2011, 77 FR 1088 

(January 9, 2012). Sec. 102, Reorganization 

Plan No. 4 of 1978, 5 U.S.C. App. at 727 

(2012). Sec. 2550.401c–1 also issued under 

29 U.S.C. 1101. Sec. 2550.404a–1 also issued 

under sec. 657, Pub. L. 107–16, 115 Stat 38. 

Sec. 2550.404a–2 also issued under sec. 657 

of Pub. L. 107–16, 115 Stat. 38. Sections 

2550.404c–1 and 2550.404c–5 also issued 

under 29 U.S.C. 1104. Sec. 2550.408b–1 also 

issued under 29 U.S.C. 1108(b)(1). Sec. 

2550.408b–19 also issued under sec. 611, 

Pub. L. 109–280, 120 Stat. 780, 972. Sec. 

2550.412–1 also issued under 29 U.S.C. 1112. 

■ 2. In § 2550.404a–5, revise paragraph 

(h)(1) to read as follows: 

§ 2550.404a–5 Fiduciary requirements for 

disclosure in participant-directed individual 

account plans. 

* * * * * 

(h) * * * 

(1) At least annually thereafter means 

at least once in any 14-month period, 

without regard to whether the plan 

operates on a calendar year or fiscal year 

basis. 

* * * * * 

Signed at Washington, DC, this 12th day of 

March 2015. 

Phyllis C. Borzi, 

Assistant Secretary, Employee Benefits 

Security Administration, U.S. Department of 

Labor. 

[FR Doc. 2015–06211 Filed 3–18–15; 8:45 am] 

BILLING CODE 4510–29–P 


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