DOL Expects to Release Guidance on Paper Statements, E-Disclosures

The U.S. Department of Labor is preparing guidance that could further influence how retirement plan participants receive benefit statements, restoring a guaranteed role for paper even if electronic delivery remains the standard form of communication. 

Under the regulatory agenda announced in September, the Department of Labor’s Employee Benefits Security Administration is developing a proposal to implement Section 338 of the SECURE 2.0 Act of 2022, which requires defined contribution plans to provide participants with at least one paper benefit statement each year, unless they affirmatively opt out.  

The same provision requires defined benefit plans to provide paper statements at least once every three years. 

The requirement takes effect for plan years beginning after December 31, 2025, and represents a notable shift after years of regulatory momentum toward default electronic disclosures. 

The forthcoming guidance would build on the DOL’s 2020 electronic disclosure safe harbor, which allowed plan sponsors and recordkeepers to treat electronic delivery as the default for participants with valid email addresses or mobile phone numbers on file, subject to notice and opt-out requirements. That rule was widely viewed as a modernization milestone, reflecting how participants increasingly manage financial matters online. 

But the new SECURE 2.0 mandate underscores an enduring policy tension: how to capture the efficiency and engagement benefits of electronic communications without excluding participants who rely on, or prefer, paper. 

“Electronic delivery clearly fits the world we live in today,” says Kevin Crain, the executive director of the Institutional Retirement Income Council. “It’s cheaper, faster and far more connected to action. You can send a communication and immediately link a participant to a website or app where they can do something—enroll, change contributions, review investments. Paper just can’t do that.” 

In general, electronic deliveries and payments tend to be cheaper and quicker than paper checks or physical mail. 

In August, the DOL and Social Security Administration moved to paperless checks for benefits payments, citing cost and efficiency. 

According to the DOL, electronic payments are cost effective, since each paper check costs the agency about 50 cents to distribute, whereas each electronic funds transfer costs less than 15 cents, and funds are more quickly transferred. The exact cost difference between paper and electronic communications, without involving any funds transfers, was not immediately available.  

IRIC’s Crain notes that recordkeepers have pushed for electronic delivery not only to reduce printing and postage costs, but because digital communications are measurable. Providers can see whether an email was opened or a link was clicked, something that is impossible with mailed disclosures. From an engagement standpoint, he says, digital delivery often leads to higher participation and better-informed savers. 

At the same time, critics of all-electronic delivery have long argued that not every participant experiences digital communications the same way. David John, a senior strategic policy adviser at the AARP Public Policy Institute, says preferences vary widely across age groups, job types and access levels—and that assumptions made by plan designers do not always match reality. 

According to John, soon-to-be-released AARP research has found that while many older Americans are comfortable online, some still retain information better from printed materials. Others may have email addresses that change when they retire or leave an employer, making electronic delivery less reliable over time. For these participants, paper statements can serve as a durable record that is easier to locate years later. 

“There’s a continued need for paper, regardless of how advanced electronic delivery becomes,” John says. “But there are also many people who are much more comfortable receiving information online. The challenge is making sure communication methods align with how participants actually live and work.” 

That challenge has become more complex as plan demographics evolve. More retirees and terminated employees are leaving their assets in employer plans, creating communication hurdles once corporate email addresses are no longer active. While plan sponsors often do a good job collecting updated mailing addresses, Crain says, maintaining current personal email information can be harder, sometimes forcing administrators to revert to paper delivery anyway, on rare occasions. 

SECURE 2.0’s paper statement requirement would likely address those concerns by ensuring participants receive at least one paper statement annually.  

Rather than eliminating default e-delivery or undoing the protections under the DOL’s safe harbor, the guidance would likely ensure that participants receive at least one tangible reminder of their retirement savings each year—and that new participants are clearly informed of their rights to paper disclosures before being routed into electronic delivery. 

For plan sponsors, the coming DOL guidance is expected to clarify how these requirements interact with the 2020 safe harbor, including how initial paper notices, opt-out processes and ongoing disclosures should be coordinated.  

Looking ahead, industry observers say the broader trajectory still favors digital communication, particularly as mobile apps, personalized messaging and emerging technologies such as artificial intelligence become more integrated into retirement plan administration. 

“Electronic delivery is the foundation,” Crain says. “Once that chassis is in place, you can build more personalized, real-time communication on top of it. The annual paper statement doesn’t stop that—it just ensures no one is left behind as the system continues to modernize.”