In Field Assistance Bulletin (FAB 1) 2003-3, released May 19, 2003, the U.S. Department of Labor ("DOL") provides new broad and flexible guidance that describes how fiduciaries might allocate a defined contribution plan’s (e.g., a 401(k) plan) expenses. In general, FAB 2003-3 clarifies that fiduciaries of these plans normally have considerable latitude in (1) allocating plan expenses to the plan as a whole (i.e., to all participants) or to various classes of participants and (2) allocating expenses to specific participant accounts whether the allocation is pro rata (typically based on individual account balances), per capita or based on some other method. This guidance provides an important supplement to DOL Advisory Opinion 2001-01A, released in January 2001 and previous other guidance, which addresses what types of expenses might be payable by a plan. Please visit our Web site at www.KilpatrickStockton.com.
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10 June 2003