The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has issued Technical Release 2011-03R, which revises the department's interim policy regarding the use of electronic media to satisfy the disclosure requirements under the department's final participant-level fee disclosure regulation.
On September 13, 2011, the department issued Technical Release 2011-03. The interim policy states that the department will not take enforcement action based solely on a plan administrator's use of electronic media to make the required disclosures under the participant fee disclosure regulation if the administrator complies with the conditions in the technical release.
In response, EBSA has received a number of inquiries regarding whether Technical Release 2011-03 is intended to apply to continuous access websites and whether, and under what circumstances, it allows investment-related information required under paragraph (d) of the participant-level fee disclosure regulation (i.e., the comparative chart) to be furnished as part of a pension benefit statement.
Technical Release 2011-03R is identical to Technical Release 2011-03 except as necessary to clarify that (1) continuous access websites are permissible if the administrator complies with the conditions in the technical release; and (2) investment-related information under paragraph (d) of the participant-level fee disclosure regulation may be furnished as part of, or along with, a pension benefit statement, either electronically under the conditions in the technical release or in paper form.
(update 12/9/2011)
The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has issued Technical Release 2011-03 which sets forth an interim policy regarding the use of electronic media to satisfy disclosure requirements under the department's final participant-level fee disclosure regulation.
The participant fee disclosure regulation requires employers to disclose more information about plan and investment costs to workers who direct their own investments in ERISA-covered 401(k) and other individual account retirement plans. Under the final rule, plans generally have until at least May 31, 2012 to start giving better information on 401(k) and similar plan fees and expenses to participants.
This technical release allows plan administrators to furnish information required under the final participant disclosure rule electronically. This includes the use of continuous access websites, if certain conditions and safeguards are met. The interim policy states that the department will not take enforcement action based solely on a plan administrator's use of electronic technologies to make the required disclosures under the participant fee disclosure regulation if the administrator complies with the conditions in the technical release.
(posted 9/14/2011)