Quarterly Benefit Statements

[dragondon]

Is it legal to supply the quarterly benefit statement on the users participant dashboard and not send them via mail or email? Or must all the quarterly benefit statements be sent to the email provided on the account? 

[Peter Gulia]

Even if a participant, beneficiary, or alternate payee affirmatively or impliedly assented to electronic delivery of disclosures, furnishing a statement in the participant portal is not, by itself, enough.

Rather, the plan’s administrator (or its service provider) sends to the individual’s email or smartphone address a notice of internet availability, which describes the document furnished and hyperlinks to or specifies the website address at which the individual retrieves the document.

29 C.F.R. § 2520.104b-31(d)(3) https://www.ecfr.gov/current/title-29/part-2520/section-2520.104b-31#p-2520.104b-31(d)(3).

The idea is that the administrator must tell the participant that there is something to look for.

[Paul I]

Note SECURE 2.0 section 338 effective for plan years starting in 2016:

Annual Paper Statement Requirement

Requires the provision of a paper benefit statement at least once annually for a DC plan and at least once every three years for a DB plan, unless the participant is covered by the 2002 e-delivery safe harbor or otherwise affirmatively consents. The DOL is directed to amend the 2002 e-delivery rule to require a one-time paper notice before any disclosure may be sent electronically after the effective date.

This gives the DOL almost 2-1/2 years to amend the rules.  Maybe they will let generative AI take a turn at coming up with the new rules.

[Peter Gulia]

SECURE 2022’s § 338 amendment of ERISA § 105(a)(2) “shall apply with respect to plan years beginning after December 31, 2025.”

That effective-date expression is somewhat awkward because ERISA § 105(a)(2)(E)’s command applies regarding calendar years.

Some administrators are planning paper statements (to the extent required) in January 2027 for periods ended and as at December 31, 2026.

[Belgarath]

31 minutes ago, Peter Gulia said:

Some administrators are planning paper statements (to the extent required) in January 2027 for periods ended and as at December 31, 2026.

Makes sense to me! Naturally barring further guidance. With all the other garbage that we have to deal with before this issue, I thankfully can't get too concerned yet. With luck I'll be retired by then!