Earlier this year, the U.S. Department of Labor (DOL) changed how retirement plan disclosure documents may be distributed. This rule change will affect over 700,000 retirement plans that are covered under ERISA and must provide multiple paper disclosures to plan participants. The new rule provides added flexibility to plan sponsors with clear guidance on how to handle electronic disclosures.
Under the new rule an initial paper notice must still be provided to participants. However, subsequent notices may be posted online or emailed to participants. A participant will retain the option to opt-out of electronic disclosures via the initial notice. The DOL expects plan sponsors to save billions of dollars over the next ten years under the new rule.
For further details see this fact sheet.
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