Department of Labor Proposes New ERISA Safe Harbor
The Department of Labor (DOL) released a proposed rule on October 23, 2019, that would create a voluntary safe harbor allowing employee pension benefit plans to communicate certain required plan notices and disclosures electronically. The history of the proposed rule reflects it was developed in response to a 2018 Executive Order directing the DOL to find ways to improve effectiveness and reduce the cost of required voluminous paper notices and disclosures. In essence, this proposed rule reflects the modern realities of technology by offering a voluntary safe harbor for employers who want to make certain retirement plan disclosures accessible, such as on a website, as opposed to sending paper documents through the mail. 2