Electronic Disclosure Safe Harbor for Retirement Plans
On May 21, 2020, the Department of Labor (“DOL”) released its final regulation Electronic Disclosure Safe Harbor for Retirement Plans. 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 potentially large volumes of paper documents through the mail.
The new safe harbor permits the following two optional methods for electronic delivery:
- Website Posting. Plan administrators may post covered documents on a website if appropriate notification of internet availability is furnished to the electronic addresses of covered individuals.
OR
- Email Delivery. A plan administrators may send covered documents directly to the electronic addresses of covered individuals, with the covered documents either in the body of the email or as an attachment to the email.
Retirement plan administrators who comply with the safe harbor will satisfy their statutory duty under ERISA to furnish covered documents to covered individuals.
Final Regulation
Detailed Summary Prepared by Davis & Harman
Department of Labor Fact Sheet and Press Release
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