US. Department Of Labor Simplifies Electronic Disclosure Requirements For Retirement Plans
For years, employers have struggled to satisfy Department of Labor (DOL) requirements for providing legally required notices and documents to retirement plan participants through electronic means. The DOL itself has long acknowledged that its electronic disclosure regulations were outdated and unnecessarily burdensome for employers.
On May 27, the DOL published new regulations that simplify the process for providing legally required notices and documents to retirement plan participants. At a high level, these new regulations provide a safe harbor which allows retirement plan administrators to provide notice to participants by email or text, with a link to a website that hosts the required notices or documents.
It is important to note that these regulations apply only to retirement plans, not to health and welfare plans. Although not technically effective until July 27, 2020, the DOL has indicated that it will not take action against an employer who implements the new regulations immediately.
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