Under ERISA, plan fiduciaries must act prudently in selecting service providers and must ensure that only reasonable compensation is paid for services provided to plans. To perform this function, the fiduciary must have sufficient information regarding fees and compensation that the service provider receives and must ascertain whether there are interests on the part of the service provider that may call into question the objectivity of the service provider in providing its services to the plan. EBSA has proposed amending the existing regulation to clarify what constitutes a reasonable contract or arrangement and to require more comprehensive written disclosure concerning plan contracts with service providers.For more information, see the Department of Labor’s fact sheet titled Proposed Regulation Relating To Service Provider Disclosures Under ERISA Section 408(b)(2) at: http://www.dol.gov/ebsa/pdf/fs408b2.pdf.