Final Electronic Disclosure Rule
A recent article in PLANSPONSOR provides updates on the Final Electronic Disclosure Rule published by the U.S. Department of Labor (DOL) and the Employee Benefits Security Administration (EBSA). The final rule expands the ability of private sector employers to communicate mandated retirement plan disclosures and other information online or by email.
Largely mirroring the proposed version of the rule, which was put forward last year, the final rule allows employers to deliver disclosures to plan participants electronically by default, with the ability for participants to opt in to paper mailings if preferred.
The leadership at the EBSA says this measure will reduce printing, mailing and related plan costs by an estimated $3.2 billion over the next decade. The rule will also make disclosures more readily accessible and useful for participants, they say, while preserving the rights of those who prefer paper disclosures.
“This rule is an outstanding example of how commonsense deregulatory efforts can save billions of dollars,” says U.S. Secretary of Labor Eugene Scalia in a statement published alongside the final rule. “The rule will rely on widely available technology to keep workers and retirees informed about their plans, while still preserving the option to receive retirement information by mail. As we look ahead to reinvigorating the American economy, the Department of Labor’s priorities include eliminating unnecessary burdens for employers that sponsor retirement plans and on addressing the needs of wage earners, job seekers and retirees.”
After reading the article, I thought it would be a good time to reach out to our clients and partners who are still receiving paper statements from First State Trust Company and offering email notification and online access (TrustLink) to their account statements. Please contact your Trust Officer if you do not have TrustLink access and would like to stop receiving paper statements. The 2019 5500 Schedule C disclosures for ERISA clients were mailed in April, next year we are planning on electronic delivery.
Chief Operating Officer
The posts expressed are views of FSTC and are not intended as advice or recommendations. For informational purposes only. FSTC does not offer tax or legal advice, professional counsel should be sought for tax or legal advice.