(502) 429-0767 Secure File Sharing Ask An Expert M

The DOL's New Proposed One Paper Statement Rule & How it Impacts You

Leisha Gosling, MBA, CEBS, QKA, QKC | Notices |

How New DOL Guidance Could Impact Your Disclosure Process

The Department of Labor’s new proposed regulations significantly change how retirement plans may rely on the rule that allows only one paper participant statement per year.  While the original rule seemed simple, the proposed regulation adds layers of conditions and documentation.

Old Requirements

Topic

Old Requirement (Prior Rules)

Paper Statement Frequency

Plans could provide one paper statement per year for defined contribution plans if the other quarterly statements were delivered electronically.

Default Electronic Delivery

Allowed under the 2020 e-delivery safe harbor (notice-and-access or direct email).

Participant Consent

No explicit requirement for participant opt-in or confirmation beyond standard e-delivery rules.

Website Posting Requirements

Statements had to be posted online if using notice-and-access, but no timing requirement tied to the paper-statement exception.

Notification Requirements

Standard notice-of-availability rules applied.

Tracking & Documentation

No special tracking required beyond normal disclosure rules.

Applicability to Plan Types

Applied to defined contribution plans only.

Failure Consequences

Noncompliance could lead to disclosure violations but was rarely enforced.

Rationale

Intended to reduce paper and administrative burden.

 

 

New Requirements

Topic

New Requirments (Proposed Rules)

Paper Statement Frequency

Still allows one paper statement per year, but only if strict new conditions are met.

Default Electronic Delivery

Still allowed but additional participant protections required before relying on one-paper-per-year rule.

Participant Consent

Plans must ensure participants have continuous electronic access and participants must not have opted out of e-delivery.

Website Posting Requirements

Statements must be posted online within 45 days of the end of the quarter for which the paper statement is not provided.

Notification Requirements

Plans must send a specific notice informing participants that only one paper statement will be provided per year and explaining how to request additional paper copies.

Tracking & Documentation

Plans must maintain records proving compliance, including posting dates, delivery confirmations and participant access.

Applicability to Plan Types

Still applies to DC plans, but the DOL clarifies narrower applicability and excludes certain plan types and situations.

Failure Consequences

Noncompliance may result in fiduciary breach exposure as the DOL emphasizes participant rights and access.

Rationale

Focused on participant protection, ensuring electronic access is meaningful and reliable.

 

The Bottom Line

While the new proposed rules do not eliminate the one-paper-statement option, it does make it much harder to use.  Plans must prove participants have real-time electronic access to quarterly statements.  The added participant protections may make compliance more complex than expected.  The DOL is clearly signaling that paper is still important for many participants and the new rule may require changes to systems and processes.  If you have any questions or concerns, please contact your RMS Account Executive or Leisha Gosling at (502) 719-0581.

author

Leisha Gosling has worked for over 30 years in the field of Defined Contribution Plan Administration. She graduated from University of Louisville with a Bachelor of Science in Business Management and from Sullivan University with a Master’s degree in Business Administration. Leisha joined RMS as a New Business Consultant in 2020. Her areas of expertise include qualified retirement plan administration and consulting, plan document underwriting, and compliance. She focuses the majority of her time at RMS on new client implementation and onboarding as well as marketing and new business initiatives. She also maintains the plan document used by the firm and performs special research projects. Leisha has been awarded the designations of Qualified 401(k) Administrator and Qualified 401(k) Consultant from the American Society of Pension Professionals & Actuaries and Certified Employee Benefits Specialist from the International Foundation of Employee Benefit Plans.

Let us help design and administer a Retirement Program that meets your needs.

Request a Quick Quote