International Paper - PLANSPONSOR.com

Case 3:06-cv-00703-DRH-CJP Document 2 Filed 09/11/2006 Page 22 of 5283. ERISA § 404(c) provides to Plan fiduciaries a “safe harbor” from liability forlosses that a participant suffers in his or her 401(k) account to the extent that the participantexercises control over the assets in his or her 401(K) accounts. To be eligible for the protectionof this “safe harbor,” Plan fiduciaries must, among other things, provide:A. “an opportunity for a participant or beneficiary to exercise control overassets in his individual account,” andB. “a participant or beneficiary with an opportunity to choose, from a broadrange of investment alternatives, the manner in which some or all of the assets inhis account are invested.”29 C.F.R. §2550.404c-1(b)(1).84. For a participant or beneficiary to have “an opportunity to exercise control overassets in his individual account” – Plan fiduciaries must provide him or her with “the opportunityto obtain sufficient information to make informed decisions with regard to investmentalternatives available under the Plan.” 29 C.F.R. §2550.404c-1(b)(2)(i)(B).85. The “sufficient investment information” Plan fiduciaries must provide includes:A. “A description of any transaction fees and expenses which affect theparticipant's or beneficiary's account balance in connection with purchases orsales of interests in investment alternatives (e.g., commissions, sales load,deferred sales charges, redemption or exchange fees).” 29 C.F.R. §2550.404c-1(b)(2)(i)(B)(1)(v); andB. At least upon request, “[a] description of the annual operating expenses ofeach designated investment alternative (e.g., investment management fees,administrative fees, transaction costs) which reduce the rate of return to22