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DOL Field Assistance Bulletin: Disclosure and Other Obligations Relating To Float

December 01, 2002

By Susan G. Curtis and Sergei A. Antonov

On November 5, 2002, the Department of Labor’s Pension and Welfare Benefits Administration released Field Assistance Bulletin  2002-3 which sets forth the disclosure obligations and other conditions under which service providers, such as banks and trust companies, acting as non-discretionary trustees or custodians to employee benefit plans, may retain the earnings generated by shortterm investment of funds held in general or “omnibus” accounts. The Bulletin also details the factors which plan fiduciaries must consider in evaluating the reasonableness of a service agreement containing a float arrangement.