The Department of Labor (DOL) recently published its final rule providing a safe harbor to allow retirement plan administrators to provide certain retirement plan disclosures via e-mail or make them available on a website or mobile app. Under the rule,a plan administrator may send any documents that are required to be sent under Title I of the Employee Retirement Income Security Act (ERISA).
This would include:
- summary plan descriptions
- summary of material modification
- statements
- summary annual reports
- fee disclosures
- safe harbor notices QDIA notices
- blackout notices
The rule does not apply to documents that are only required to be available on request or documents required by the Internal Revenue Service (IRS). These include 401(k) plan safe harbor notices, ERISA 204(h) notices, special tax notices related to plan distributions, and notices regarding IRS determination letter filings.
The notices may be sent to any participant in the plan who provides an e-mail or smartphone number for purposes of electronic delivery. Alternatively, if the employer has provided an employee with an e-mail address for their employment, they will be viewed as having provided the e-mail address. Employees retain the right to opt-out of e-delivery, in which case the employer must continue to mail the documents.
Any electronic materials provided must follow these guidelines:
- Communicated in a manner that could be understood by the average plan participant
- Recipients must be able to search the information electronically
- Must be in a format suitable for reading online or clearly printed and has the ability to be permanently retained in the format it was delivered
To be covered by this safe harbor an employer must provide an initial paper notice to inform participants that they will now receive communications electronically. The paper notice must indicate the electronic address that will be used and let the individual know that they can opt-out. It must also describe how to access documents and indicate that some documents may only be available for a limited time.
When the employer begins sending electronic communications, there are certain notifications that must be included in each communication to ensure the employee is aware it is a plan communication. To learn more about the e-delivery safe harbor contact a Multnomah Group consultant.
Multnomah Group is a registered investment adviser, registered with the Securities and Exchange Commission. Any information contained herein or on Multnomah Group’s website is provided for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Multnomah Group does not provide legal or tax advice.