Defined contribution retirement plans, specifically 401(k) retirement plans, require plan sponsors to send several required disclosures each year. The disclosures are lengthy, confusing to plan participants, and costly to plan sponsors.
Recognizing the burden that the required disclosures place on retirement plan sponsors and their confusing nature, President Trump issued an Executive Order in 2018, directing the Department of Labor (“DOL”) to review the required plan disclosure process under ERISA. As a result, the DOL recently sent a proposed rule to the White House Office of Management and Budget, specifically focusing on the ability to send disclosures electronically and simplifying their content. If the proposal is approved following a review period of up to 60 days, the details should be released for public comment shortly thereafter.
Nyhart will continue to monitor the proposal’s progress and release updates accordingly. If you have any questions please contact your Nyhart consultant.