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Compliance December 8, 2011
EBSA Clarifies Electronic Fee Disclosure Rules
The Employee Benefits Security Administration issued Technical Release 2011-03R, revising its interim policy regarding the use of electronic media to satisfy participant-level fee disclosure requirements.
Reported by Rebecca Moore
The technical release revises and restates Technical Release 2011-03 to clarify that continuous access websites are permissible electronic disclosures if the administrator complies with the conditions in the technical release; and 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.
On September 13, 2011, the department issued Technical Release 2011-03 (see “DoL Will Allow for Electronic Disclosure to Participants“), which 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.
EBSA said it 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.
To view Technical Release 2011-03R visit http://www.dol.gov/ebsa/newsroom/tr11-03r.html.