DOL Eases Enforcement of New Rules for Paper Benefit Statements

The Department of Labor announced Tuesday that it will temporarily ease enforcement of new federal requirements mandating paper benefit statements, in order to “provide clarity and assurance to plan administrators,” along with additional flexibility, while regulators finalize implementation rules.

In a new Field Assistance Bulletin issued by the Employee Benefits Security Administration, the DOL announced it will not take enforcement action against plan administrators that make a “good faith” effort to comply with the requirements established under the SECURE 2.0 Act of 2022.

The law, which took effect for plan years beginning after December 31, 2025, requires defined contribution plans to provide at least one paper pension benefit statement each calendar year and generally requires defined benefit plans to issue a paper statement at least once every three years.

In February, the DOL published a notice of proposed rulemaking, Requirement to Provide Paper Statements in Certain Cases – Amendments to Electronic Disclosure Safe Harbors. The proposed rule would amend the department’s 2002 electronic disclosure safe harbor, as directed by SECURE 2.0, to require that retirement plans send a one-time initial notice on paper to participants who first become eligible to participate and beneficiaries who first become eligible for benefits after December 31, 2025, before defaulting them into electronic delivery. The one-time notice also must inform recipients of their right to opt out of electronic delivery.

According to the department, the temporary enforcement policy is necessary because final regulations governing electronic disclosure safe harbors from 2002 and 2020 have not been completed. Officials noted that approximately 720,000 participant-directed defined contribution plans could be affected, many of which faced a May 15 deadline to furnish quarterly benefit statements for the first quarter of 2026.

Under the temporary policy, EBSA will allow plan administrators to rely on reasonable interpretations of the proposed rules or existing electronic disclosure regulations until final guidance is issued. The DOL’s bulletin stated that “the department he will not take enforcement action against plan administrators that comply in good faith.”