A coalition of 15 retirement plan trade associations has come together to urge the U.S. Department of Labor to allow the use of electronic communications.
A letter written by the group to the DOL's Employee Benefits Security Administration specifically requests that companies be permitted to deliver disclosures to employees in electronic rather than paper format, Plan Sponsor reports.
The letter was written in response to interim guidance on the use of electronic media, which the coalition states is insufficient. Under current DOL policies there are no incentives for the use of electronic media, and paper disclosures remain more feasible from an HR compliance perspective, according to the group. Paper is considered the default form of delivery under the guidelines and electronic communication is impractical.
"There is broad movement toward electronic delivery of information," said one executive involved in the coalition. "For example, IRS makes tax forms available online now instead of mailing them. The DOL should join IRS and many other federal agencies embracing e-delivery for the benefit of investors and customers. Making e-delivery more available can also help to keep the costs of retirement plans down by cutting down on paper statements that have to be prepared and mailed."
The group requests that changes be made allowing electronic communications to be used as the standard, while allowing employees who express a desire for paper disclosures to access them. Changes to the current guidelines could also reduce the degree of activity and number of changes required to implement electronic disclosures as an alternative.
