New DOL Rules on Electronic Disclosure (and Yes, Paper Benefit Statements)

Congress and the US Department of Labor (DOL) apparently have a humorous side (who knew?). In a throwback to the 1990s and early 2000s, defined contribution plan sponsors must now provide at least one paper statement to participants each year, unless participants opt-in to receive them via electronic receipt. Thus, for 401(k), 403(b), 457, profit sharing, money purchase, and other defined contribution plans, plan sponsors have a new reporting requirement. This is mandated under SECURE 2.0, and the DOL is merely implementing this legal requirement. This requirement is effective for plan years beginning after December 31, 2025.

It gets better. While plan sponsors of qualified retirement plans have had new electronic disclosure rules since 2022 allowing participants to elect to receive the myriad of one-time and annual notices electronically, all health and welfare plans, including medical, prescription drug, dental, vision, life insurance, disability coverage, and others are all playing by the electronic disclosure rules set in (wait for it) 2002. You know, during the dial-up and AOL era. Those plans are only allowed to utilize electronic disclosures of their myriad one-time and annual notices when participants not only opt-in, but also have workplace computer systems and e-mail addresses at work in which to receive those disclosures.

One can only hope that we’ll get updated rules (like maybe to the mid-21st century) for health and welfare plan electronic disclosures sometime soon.