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Retirement plan disclosures required by the Employee Retirement Income Security Act (ERISA) may be delivered by electronic media under the Department of Labor’s (DOL) updated electronic distribution regulation.

Leveraging modern communication methods to distribute employee benefit plan documents electronically saves time and money, but manufacturers often have limited options for doing so under the DOL’s two traditional safe harbor rules. Moreover, the nature of the workforce (employees working on the manufacturing floor and in varying worksites) meant that manufacturers were often left having to physically mail the employees benefit plan documents and notices to employees. Not only can a physical mailing be an administrative headache, but it can be expensive. The DOL’s updated electronic distribution regulation expands the categories of employees who can receive retirement plan documents electrically, allowing a broader range of manufacturers to use technology to more easily comply with the requirement to distribute benefit documents to employees.

Background

Prior to the updated guidance, employers wanting to distribute employee benefit plan documents electronically may do so under two voluntary safe harbor rules. The rules require that the employer:

• Follow an intricate process to obtain an employee’s affirmative consent to receive documents electronically; or

• Provide documents electronically to employees who have access to a computer as an...

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