The Department of Labor’s latest initiative creates a mammoth new to-do list for employers when it comes to retirement plan fee disclosure.

The feds just issued final rules to make 401(k)s and the expenses that come with them easier for employees to understand. Too bad it won’t be easier on employers to administer them … or even understand what’s expected! You have 134 pages of very specific rules to get your arms around.

And while technically companies have until Jan. 1, 2012, to comply, the number of changes required of your business will keep you busy right until that date comes around.

Your best first step: Huddle with your retirement plan service provider soon to determine how you’re going to cover these five bases:

1. General plan information. Your company is now expected to disclose general plan data, like a list of current investment options. And get ready to offer up administrative expense info, including an explanation of plan-wide expenses, such as accounting, legal or recordkeeping fees.

2. Employee-specific plan info. You’ll need to explain, too, any fees and expenses that may be charged to or deducted from individuals’ accounts based on the actions they take. For example, fees and expenses for plan loans and for processing garnishments.

3. Quarterly disclosure statements to employees. Get ready to prepare and distribute a quarterly disclosure to participants on the amount of plan-related fees and expenses you deduct from participants’ accounts.

4. An online resource for employees. While you know you can’t offer employees investment advice, you’ll need to direct them to resources where they can get more info. Specifically, the new rules require you to provide participants and beneficiaries access to a website with specific additional info about the investment options for workers who want more or more current info. (You’ll have to provide a glossary of investment terms, too, which can be online.)

5. A standard of apples-to-apples comparison for investment options. Hope you have a finance staffer that’s good with graphics! The final rules require that your company provide employees with a chart comparing their investment options (DOL offers a model for you).

Two small rays of hope

Considering that this massive to-do lists is merely the highlights of the new rules, even the Feds understand this is a tall order for any company of any size. So the DOL included two bits of relief:

• A limited transition rule. You’ll get up to 60 days after the effective date to provide employees with info that’s otherwise due to them on or before the date they can first direct investments.
• Good-faith protection. Even if your company doesn’t comply to the letter of the law, you may not be sunk. The DOL is offering protection to firms that reasonably believe the info their plan service providers give you is correct and complete. So you shouldn’t be on the hook for their mistakes.

Info: For a DOL fact sheet and sample investment chart, go here.