Proposed government regulations to enhance disclosures to beneficiaries of retirement plans have drawn criticism from agents, brokers and plan representatives who say the proposal would be a burden and could overwhelm those it seeks to protect.

The proposal, one of several the Department of Labor is undertaking under pressure from Congress and consumer advocates, would require that contracts between certain service providers and benefit plans provide for specific and detailed information. Additionally, all services furnished to a plan and all compensation–direct and indirect–to be received by the service provider would have to be disclosed in writing. The proposed rules would also require the disclosure of possible conflicts of interest of the service provider that may affect the performance of plan services.

In commenting on the proposal, however, groups representing agents and brokers argued that the proposed rules would be overly broad, and called on the department to revise its proposal.