DOL Unveils New E-Delivery Safe Harbor

REGULATORY COMPLIANCE

In a move estimated to save plans and participants $2.4 billion over the next decade, the Labor Department has unveiled a new, optional, electronic delivery safe harbor for retirement plans.

The Honorable Preston Rutledge, Assistant Secretary of Labor, announced the new proposed safe harbor at the 2019 ASPPA Annual Conference at National Harbor, Maryland as the rule was posted online.

The proposal – which fulfills a key component of President Trump’s August 2018 retirement security Executive Order – would allow plan administrators who satisfy specified conditions to provide participants and beneficiaries with a notice that certain disclosures will be made available on a website. 

“Electronic disclosure has been a priority issue in the retirement benefits world for a number of years,” said Rutledge. “This step forward – this rule – will provide significant benefits to plan participants, plan sponsors and plan administrators,” he told attendees.

Building on those comments, American Retirement Association CEO and ASPPA Executive Director Brian Graff told Rutledge that “as an organization that has been working with the departments to try and improve and make more sensible disclosure rules for retirement plan participants, we just want to thank you for your leadership” in the matter.

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