Bipartisan legislation was introduced Tuesday to allow 401(k) participant communications to be delivered electronically.
Rep. Jared Polis, D-Colo., and Rep. Phil Roe, R-Tenn., introduced the bipartisan Receiving Electronic Statements to Improve Retiree Earnings (RETIRE) Act, which they said would “ensure employers make retirement information easily accessible online, while providing protections for employees who prefer to receive paper documents.”
Under current law, the lawmaker said, “employers are required to waste significant money and paper mailing documents like notices, disclosures and statements to retirees.”
Estimates put the costs of sending just one four-page notice to recipients is between $36 million and $60 million, the lawmakers note.
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“We need to make it easier for Americans to think about and plan for retirement,” said Polis in a statement announcing the legislation. “Nowadays, most Americans prefer their inbox to their mailbox. The RETIRE Act makes planning one-click away by giving employees online access to their retirement information. Not only does it make retirement information more accessible, but it helps the environment and reduces costs by cutting back on wasted paper.”