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PEOs and Retirement Regulation

PEOs and Retirement Regulation

Electronic Disclosure Safe Harbor for Retirement Plans

On May 21, 2020, the Department of Labor (“DOL”) released its final regulation Electronic Disclosure Safe Harbor for Retirement Plans. The final rule establishes a new, voluntary safe harbor for retirement plan administrators who want to use electronic media, as a default, to furnish covered documents to covered individuals, rather than sending potentially large volumes of paper documents through the mail.

The new safe harbor permits the following two optional methods for electronic delivery:

  • Website Posting. Plan administrators may post covered documents on a website if appropriate notification of internet availability is furnished to the electronic addresses of covered individuals.

    OR
  • Email Delivery. A plan administrators may send covered documents directly to the electronic addresses of covered individuals, with the covered documents either in the body of the email or as an attachment to the email.

Retirement plan administrators who comply with the safe harbor will satisfy their statutory duty under ERISA to furnish covered documents to covered individuals.

Final Regulation
Detailed Summary Prepared by Davis & Harman 
Department of Labor Fact Sheet and Press Release

Related Issues

THERE ARE BETWEEN 780 AND 980 PEOs CURRENTLY OPERATING IN THE UNITED STATES, PROVIDING SERVICES TO BETWEEN 156,000 AND 180,000 SMALL AND MID-SIZE BUSINESSES.