DOL Electronic Delivery Disclosure Safe Harbor for Retirement Plans

The U.S. Department of Labor (Department) announced a final rule on May 21, 2020 that will allow employers to notify plan participants about retirement plan disclosures online or deliver them by email, as a default. The DOL estimates that over the next decade the rule will save approximately $3.2 billion in net costs for retirement plans covered by the Employee Retirement Income Security Act of 1974 (ERISA) – plans that rely on the rule will be able to eliminate costs associated with furnishing printed disclosures. The final rule establishes a new, voluntary safe harbor for retirement plan administrators who want to use electronic media, as a default, to furnish covered documents to covered individuals, rather than sending documents through the mail.