Government Initiates Broker Disclosure Requirement

Wanna hear about the broker who was making $614,000 on a South Texas 2,500 life school district while the clueless Board of Trustees thought the compensation was $128,000?.

When they found out the truth, they fired the broker and hired another one to get the $614,0000………….A TRUE STORY

“Service providers are required to disclose to a plan’s fiduciary the direct and indirect compensation, including commissions and other incentive compensation they (or their affiliates and subcontractors) receive from insurance and other service providers for encouraging plan sponsors and fiduciaries to choose such providers or their products.

These new requirements will apply to contracts for services executed, extended or renewed on or after December¬†27, 2021[.]”

Stimulus Bill Adds New Disclosure Requirements for Consultants and Brokers to ERISA Health Plans

Ballard Spahr LLP