New Safe Harbor For Electronic Delivery Of Participant Disclosures

On May 21, 2020, the Department of Labor (DOL) adopted the final version of a safe harbor rule (the "Electronic Disclosure Safe Harbor") that allows retirement plan sponsors to satisfy required participant disclosure requirements by suing website postings or email as a default approach for all participants. This reflects a major relaxation from the main existing DOL rules related to electronic disclosures. Old Safe Harbor Electronic delivery rules: Permitted electronic delivery of participant disclosures only for participants who affirmatively consented (opt-in) or who have computers that are integral to their jobs. New Safe Harbor (the "Electronic Disclosure Safe Harbor") delivery rules: Allows retirement plans sponsors to satisfy required disclosure requirements of "Covered Documents" of "Covered Plans" to "Covered Individuals" by using either website postings or email as the default approach for all "Covered Individuals". New rules were finalized on May 21, 2020 New rules are effective 60 days after the date they were published