It’s always great when we can say that a federal regulatory body has made something easier for employers in terms of benefit plan administration, and this just might be one of those times.
On Thursday, May 21, the Department of Labor issued a news release related to the publication of a final rule that will expand the ability of private sector employees (including nonprofits) to communicate retirement plan information online or by email. Prior to this rule going into effect, employers could only distribute ERISA required disclosures electronically if the employer satisfied certain safe harbor conditions (e.g. employees had to have regular access to an employer’s electronic systems – intranets, company email – as part of their expected, regular day-to-day duties).
The additional safe harbor in this new ruling is more flexible than the safe harbor that’s been in place since 2002. This change is expected to help employers and their associated plans reduce costs and burden associated with providing the regular ERISA required disclosures. The new rule is expected to go into effect in late July 2020.
Read the DOL’s news release here https://www.dol.gov/newsroom/releases/ebsa/ebsa20200521
Sr. HRBP – Benefits
Total Rewards Practice
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