Your company can now tap email or even text to pass along key retirement plan disclosures. The Department of Labor recently released a final rule, effective July 27.
And seeing how your workforce may be more fractured than usual, thanks to the coronavirus pandemic, this couldn’t come at a better time.
Here’s what you need to know to keep your company in compliance, while still enjoying the benefits of this latest development.
How you can e-send retirement plan disclosures now
Your printing and mailing costs will plunge now that you have the following two options to get retirement plan disclosures to participants:
- send an email with an attached file of the disclosures, or
- email or text employees a message with a link to the disclosures online.
Understanding what’s required
Of course, there are conditions. For starters, you’ll have to send employees a paper notification that your disclosure process is changing.
After that, you are technically supposed to notify participants every time there’s a new e-disclosure coming their way.
However, the feds realize that can lead to “notice overload” so you can send an annual notice that includes info about multiple covered docs.
You have some specifications to follow for those plan notices as well:
- They must briefly describe or identify the covered document that is being posted online
- Notices must be concise, understandable and contain only specified information, and
- They need to include an address or hyperlink to the website.
And remember to make it clear that employees always have the option to opt out of e-delivery for their retirement plan disclosures.
The DOL created a fact sheet to explain all the new requirements.