Labor Department proposes updates to ERISA e-disclosure rules, to implement SECURE 2.0 paper statement mandate

On February 25, the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) issued a proposed rule amending its electronic disclosure safe harbors pension plans, under Title I of the Employee Retirement Income Security Act of 1974 (ERISA), with comments due by April 27, 2026.

For securities firms, broker-dealers, and registered investment advisers, any practical impact described is limited to entities acting as ERISA plan administrators or sponsors that rely on EBSA’s 2002 or 2020 electronic disclosure safe harbors for pension benefit statements and other Title I ERISA disclosures, and implementation timing beyond the SECURE 2.0 applicability date is not specified pending a final EBSA rule.

The proposal would revise the 2002 safe harbor rule (29 CFR 2520.104b–1(c)) so that, for participants and beneficiaries who first become eligible after December 31, 2025, a plan that uses the 2002 safe harbor to deliver electronically a pension benefit statement must provide a one-time initial paper notice, before any electronic delivery of a pension benefit statement, explaining the right to request that all ERISA Title I required documents be furnished on paper. EBSA would also allow an existing advance statement to satisfy the new initial notice requirement if furnished on paper.

The mandatory paper pension benefit statements described in ERISA section 105(a)(2)(E) would be excluded from 2020 safe harbor (29 CFR 2520.104b–31), while adding conditions for plans using the 2020 safe harbor; (i) Covered individuals must have the opportunity to request electronic delivery instead of the required paper statement, (ii) each required paper statement must explain how to request electronic delivery and include contact information (including a telephone number) for the plan sponsor, plan administrator, or other designated representative, and (iii) the plan may not charge any fee for delivery of any paper statements. The proposal also makes a conforming change to the claims procedure regulation (29 CFR 2560.503–1) by removing cross-references to a 2002 safe harbor paragraph that EBSA proposes to redesignate.

The underlying statutory paper benefit statement requirement added by section 338 of the SECURE 2.0 Act – requiring at least one paper pension benefit statement annually for defined contribution plans, and generally at least one paper statement every three calendar years for defined benefit plans – is described as applicable for plan years beginning after December 31, 2025. EBSA also states it will not take enforcement action, as an enforcement policy, against plan administrators that comply in good faith with a reasonable interpretation of the proposal during the period from publication until after a final regulation or other applicable administrative guidance is issued.