The U.S Department of Labor has finalized a rule permitting electronic delivery of required retirement plan disclosures and documents to plan participants.
The final rule allows plan sponsors to deliver documents via email to plan participants who have an email address on file, but allows participants to choose to continue receiving paper documents through the mail.
“This is a common-sense change that benefits consumers in the digital age,” said NAIFA CEO Kevin Mayeux. “It reflects the reality that many people prefer receiving financial communications electronically. It is something NAIFA has advocated for, and we commend the Labor Department on its final rule.”
DOL estimates that the rule change will save plan sponsors $3.2 billion over 10 years by reducing costs associated with mailing paper disclosures.
“Regulatory reforms, like this one, that encourage employers to provide workplace retirement plans are a win-win for plan sponsors and participants and benefit the overall economy,” Mayeux added. “NAIFA will continue working with the Labor Department, other government departments, and Congress on policies that promote retirement preparedness and ensure that American workers have expanded access to retirement-planning services and employer-sponsored and private-market retirement plans.”
NAIFA, along with its advocacy partner NAILBA joined other industry leaders in urging the Administration to finalize the rule as quickly as possible. NAIFA was one of several organizations invited to join Employee Benefits Security Administration Assistant Secretary Preston Rutledge and Principal Deputy Assistant Secretary Jeanne Wilson on a call announcing the final rule.