Americans Want Retirement Plan Disclosures on Paper

At ASPPA’s 401(k) Summit in March, Executive Director Brian Graff and Michael Davis, then deputy assistant secretary of labor for the Employee Benefits Security Administration, debated which format was more beneficial. “The department has to balance between a lot of different constituencies,” Davis said then, adding that people who were closer to retirement, and therefore needed disclosures more, tended to be “less electronically literate.”

Judy Miller, director of retirement policy for ASPPA, pointed out that although respondents appear to prefer paper disclosure documents, they weren’t about how the cost of delivering paper documents would affect their decision.

“They should’ve been asked if they’re willing to pay more for paper delivery,” Miller said. “Cost went up significantly with fee disclosure rules. I’ve heard substantial amounts from different companies. It’s not hundreds, but it is meaningful.”

What’s more important than cost, though, is how participants engage with the information they receive and if they’re reading it at all, Miller said.

“I was pleased to see close to half of people who receive documents electronically read them,” she said. “There was no similar question for people who get paper documents.” The survey found 48% of people who receive electronic documents read them on a computer, tablet or smartphone.

Companies are doing creative things with how they electronically deliver retirement plan information to their participants, Miller said. “When they also have to invest substantial resources into paper delivery, it takes away from what they can do.”

Ultimately, regardless of the delivery method, the goal is for participants to read the disclosures. “If we’re going to do it, it’d be nice if people read it.”