DOL Proposes New Electronic Disclosure Rules for Pension Plans, Oct. 31, 2019

In response to the Trump administration's executive order, the DOL has proposed a safe harbor rule that would allow pension plans to satisfy disclosure obligations electronically. As currently proposed, the rule only applies to pension plans. It would allow plan sponsors to email required documents to participants, beneficiaries and any other individuals entitled to receive disclosures--so long as the individual has provided an email address (which can be a work email address). Any documents required under Title I of ERISA could be furnished electronically, including notices of material modification or blackout notices, except for documents that must be furnished upon request. While employers are not yet entitled to rely upon this rule until it is finalized, it provides important insight into potential future developments surrounding pension disclosure obligations. For more information on the requirements that apply to pension plans, visit Tax Facts Online.