Electronic Delivery of Plan Notices and Disclosures
Summary
The undersigned organizations are writing to urge the Department of Labor to expedite and prioritize the publication of proposed regulations that would expand the use of electronic delivery for retirement plan disclosures and notices, while also preserving the option to receive paper delivery of such disclosures and notices.
Specifically, we are requesting the Department to propose regulations, without delay, that would permit plan sponsors to make electronic delivery the default method of delivery for retirement plan disclosures and notices, unless an employee otherwise requests paper copies.
Excerpt
The Honorable Preston Rutledge
Assistant Secretary
Employee Benefits Security Administration
U.S. Department of Labor
200 Constitution Avenue, NW
Washington, DC 20210
Re: Expedite and Prioritize Guidance on Electronic Delivery
Dear Assistant Secretary Rutledge:
The undersigned organizations are writing to urge the Department of Labor (“Department”) to expedite and prioritize the publication of proposed regulations that would expand the use of electronic delivery for retirement plan disclosures and notices, while also preserving the option to receive paper delivery of such disclosures and notices. Specifically, we are requesting the Department to propose regulations, without delay, that would permit plan sponsors to make electronic delivery the default method of delivery for retirement plan disclosures and notices, unless an employee otherwise requests paper copies.
On August 31, 2018, President Trump issued an Executive Order on Strengthening Retirement Security in America directing the Department to review within one year actions that would make retirement plan disclosures more understandable and useful, while also reducing the costs and burdens they impose on employers and other plan fiduciaries responsible for their production and distribution. According to the Executive Order, the review shall explore the broader use of electronic delivery as a way to improve the effectiveness of disclosures and to reduce their associated costs and burdens. The President’s 12-month deadline is, of course, rapidly approaching. We are encouraged to see the regulatory action included in the latest Unified Agenda and would urge the Department to further prioritize electronic delivery as a part of any rulemaking to reduce costs and burdens as outlined by the Executive Order.
Consistent with the Executive Order’s direction regarding electronic delivery, the interested parties below are requesting the Department to expedite and prioritize the publication of proposed regulations that would permit plan sponsors to make electronic delivery the default delivery method for retirement plan disclosures and notices, unless an employee otherwise requests paper copies. If finalized, those regulations would immediately make retirement plan disclosures and notices more efficient and useful for retirement savers. It also could make disclosures and notices much less costly.
Electronic delivery empowers retirement plan participants by providing them constant and real-time access to information about their retirement benefits and other online tools that can assist with retirement planning. Retirement savers could more easily retain copies of benefit statements, search for relevant information, and link to relevant information and options, such as increasing their retirement contributions. In addition, electronic means enable plan sponsors to
{00299211-3}
improve communications with plan participants such as by linking to financial wellness opportunities and educational materials.
As evidenced by the dozens of House and Senate cosponsors backing the Receiving Electronic Statements to Improve Retiree Earnings Act (“RETIRE Act”) during the 115th Congress, support for the electronic delivery of retirement plan communications, with a right to paper upon request, is widespread, bipartisan, and growing.