Among its many new requirements for employee benefit plans, the Consolidated Appropriations Act, 2021 (CAA) created new compensation disclosure requirements.  The new rules require brokers and consultants anticipated to earn $1,000 or more in direct or indirect compensation to disclose that compensation to the plan sponsor prior to entering into an agreement to provide that service.

The requirement is effective for contracts entered into, extended, or renewed on or after December 27, 2021.  The Department of Labor issued Field Assistance Bulletin No. 2021-03 as there are many unanswered questions on how to comply.

USHL is providing the DOL bulletin and an Agent Compensation Disclosure on our websites to assist in disclosing compensation. Here are the links to the form and Field Assistance Bulletin No. 2021-03:

Compensation Disclosure - ACA 

Field Assistance Bulletin No. 2021-03

The GA/Agent should maintain a signed copy of the disclosure document for all contracts should an audit occur.  USHL reserves the right to request verification of compliance.

Direct any questions to the Employee Benefits Security Administration’s Office of Regulations and Interpretations at 202-693-8500.