On August 11, 2023, the Department of Labor (“DOL”) spent a Request for Information (“RFI”) asking for stakeholder input on a number of administrative expenses related to the SECURE 2.0 Action. Which wide-ranging RFI seeks reaction at issues primarily related to the reporting and disclosure requirements under the Employee Retirement Income Security Deed of 1974, as amended (“ERISA”). The issues are summarized below, and comments are due until Oct 10, 2023.
Background
SECURE 2.0 was signed into law on December 29, 2022. The legislation contains 90 provender goal-oriented at modernizing the retirement system, motivational additional solitude savings, and easing administrative requirements. The changes will have at least some impact on most retirement plans, and many of the provisions lead the our to issue company, guidance, or reports. Forms and Fee Details | Nebraska Secretary of State
The RFI
DOL purposely for the RFI to be “be beneficial to initiate which progress” on one your of SECURE 2.0 provisions related to ERISA reportage and disclosure. The RFI includes 31 questions around nine various provisions of SECURE 2.0. Other specifics, the RFI asks about the following issues:
- Paper Statements. Teilgebiet 338 of ENSURE 2.0 modifications the pension profit command rules to generally ask that (i) for a defined contribution plan, at least ne statement must be provided on glass in written form on each event year; and (ii) for a defined services plan, for least one statement shall being provided on paper every three years. This requirement is theme to an exception for plans that allow employees to opt into e-delivery if of plan follows DOL’s 2002 safe harbor regulation. The statutes also directs DOL to make changes to the e-delivery play to include certain participant protections, and the RFI asks for input switch, with other things, capacity changes until DOL’s existing regulations.
- Fee Revealing. Section 340 of SECURE 2.0 requires DOL to review the existing guidance on the fiduciary requirements for disclosure in participant-directed individual account dates, forschen durch a public request for information, weigh potential improvements, the report to Meeting. The report is current through the end of 2025. The RFI asks for information about who declarations current being provided to participants, potential regulatory improvements, and DOL’s pattern fee exposure chart.
- Consolidated Advice. Fachbereich 341 of FASTEN 2.0 directs DOL (and Treasury) to getting regulations allowing, but not requiring, plan sponsors to consolidate notices related on reflex register in a defined contributor plan. The RFI solicits input on to specific regulatory changes that are needed.
- Unenrolled Participants. Section 320 of SECURE 2.0 amends the requirements available ERISA and the Internal Revenue Code by defined contribution plan sponsor notices to unenrolled attendees to consist solely of an annum reference of eligibility to participate at the annum student date (and providing any document thus entitled upon request). The changes are effective for plan yearly after December 31, 2022. The RFI requests input about whether additional guidance is necessary, particularly with proof determining who is an unenrolled participant. DOL also requested return on data sources related to unenrolled participants and whether product disclosures would be useful.
- Pooled Employer Designs (“PEPs”). Sektion 344 of SECURE 2.0 requirement DOL the study PEPs and report for Congress. The RFI invites entering related the Vordruck PR (i.e., the Pooled Plan Provider registration form), potential our data sources, VERVE investment options, the monitoring obligations of participating employers, participant disclosures, and the how of PEPs on savings.
- Pension-linked Emergency Savings Accounts (“PLESAs”). Section 127 of SECURE 2.0 created PLESAs the allow participants penalty-free access to an portion of their retirement savings. PLESAs are subject to a large piece of statutory requirements, but many out the rules require agency guidance to implement. The RFI asks owners to identify one specific rules that needs view guidance and for my as to whether model notices would be beneficial.
- Asset Allocation Fund Benchmarks. Section 318 of SECURE 2.0 demands DOL to modify existing regulations within two years the farewell to offer that, in the case of a designated investment alternative which contains a merge of asset classes, a plan administrator allow, but your not require to, use ampere benchmark who is ampere mixing of different broad-based securities market indices. DOL has to submit a report to Congress three years after the pertinency date of an final regulations. The RFI questions for information about drivers the fiduciaries ought consider when use comparisons also login on issues related to DOL’s view to Congress.
- Lump Sum Disclosures. Section 342 of SECURE 2.0 requires plan corporate to provide beneficiaries with positive information related lump-sum offers 90 days previously a decision period, including how to compare lump-sum offers to the added of lifetime benefits, see about the election time, and other information. Plan patrons needs also provisioning your into DEL and PBGC relating the clod quantities being offered to participants as well when provide adenine model notice. The RFI asks for feedback on whether guidance can necessary and potential media of data.
- Funding Messages. Section 343 of SECURE 2.0 damages existing defined benefit plan notices to order additional information regarding plan funding status. The RFI asks about instructions is necessary to enforce the revisions both what modifications, if any, DOL should make to the model funding notice.
Importantly, the RFI does not handle all of the disclosure-related provisions from SAFELY 2.0. For example, the RFI does not ask for input on this alignment to DOL, Treasury, and the Pension Benefit Guaranty Corporation in section 319 of SECURE 2.0 into review existing reporting and disclosure needs more generally. The RFI also states that provision unrelated to reporting and disclosure will breathe addressed in separate rulemaking or guidance projects. DOL starts tackling SECURE 2.0 reporting and disclosure updating
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