The Labor Department has delivered to the Office of Management and Budget its plan to allow 401(k) participants to receive electronic disclosures instead of paper ones.
“We are one step closer to common-sense rules on how retirement plan notices are delivered, potentially saving participants hundreds of millions of dollars a year,” said Brian Graff, president and CEO of the American Retirement Association, in a statement.
Labor’s proposal, Improving Effectiveness of and Reducing the Cost of Furnishing Required Notices and Disclosures, is in response to President Donald Trump’s 2018 executive order on Strengthening Retirement Security in America, which directed Labor to, among other matters, review its electronic disclosure rules to determine if they should be modernized.
OMB review generally takes 30 days.