e-Delivery of Part. Fee Disclosures - Dazed and Confused

[austin3515]

So I'm reading up on the fee disclosure requirements and the use of electronic media and I am Dazed and Confused. I'm reading that for the Investment related information (the chart, etc.) that the DOL Safe Harbor IS available. Meaning:

-If email is an integral part of your job; OR

-You opt in to electronic delivery; then

You can receive the disclosures electronically. Otherwise, you need to receive paper.

Then there is this ridiculously complex Alternative Method which as far as I can tell is a far less efficient way of obtaining the very same result. So what gives? What is the practical purpose of this Alternative Method? The Alternative Method requires participants to receive paper notices asking them if they want to opt-in and then they must receive a paper annual notice each year, etc.

Until now, I thought the Alternative Method was the only e-delivery method available for the fee disclosures. I did not realize it was in addition to the existing safe harbors. I just cannot figure out what you get for all of your efforts in complying with the Alternative Method...

[J Simmons]

Hey, Austin,

Participant-directed investments is the gift that just keeps giving--one plan administration headache after another since 2007.

The pooled-account approach with an investment committee making all investment decisions is now the more efficient plan design.

[austin3515]

Don;t I know it. I tell all my pooled clients that they dodged a bullet....

But back to my discussion: it seems like the sole distinction related to the "alternative method" is the continuous access web-site - that is, an email is sent saying "hey, you can log into the web-site to get your disclosure" as opposed to attaching a pdf to the email. Any thoughts greatly appreciated.

[Bird]

Ummm...I haven't looked at those rules in a long time and sorry, but I don't feel like doing it now. My recollection is similar to yours, that there was some other way to try to comply, but it was more trouble than it was worth. Most of my clients are very small businesses, and I do take the extra trouble to pluck the disclosure documents from the investment company websites as they are available, and I send them with instructions that they can forward by e-mail if using the computer is an integral part of their employee's job, otherwise they must send paper (and I send a paper copy as well so they can make copies, with an offer to send more hard copies for a price).

Sorry to be cynical, but this particular issue for me is mostly about being able to say "I told you to do it."

[austin3515]

Bird, we have the same exact approach except that I boneheadedly missed the "e-mailing is ok if email is an integral part of the job." Better late than never I suppose.