Summary At a Glance
- The DOL has proposed new requirements under SECURE 2.0 that would mandate periodic paper benefit statements, limiting reliance on electronic delivery methods.
- Published February 25, 2026, the proposal includes a one-time paper notice requirement for participants first eligible on or after January 1, 2026, and ongoing paper delivery obligations depending on plan type.
- If finalized, employers will need to shift to hybrid delivery models and ensure compliance with expanded disclosure standards.
The U.S. Department of Labor (DOL) has released a proposed rule that may change how your organization delivers retirement plan information. Published on February 25, 2026, the proposal aims to implement Section 338 of the SECURE 2.0 Act. This rule focuses on ensuring participants have better access to their financial data by requiring certain benefit statements to be provided on paper rather than just electronically.
What You Need to Know
For years, many employers have relied on “safe harbor” methods to deliver retirement disclosures digitally. This new proposal narrows that flexibility to protect participants who may not have regular computer access or who simply prefer physical records.
The primary changes include:
- Defined Contribution Plans (e.g., 401(k): Must provide at least one paper benefit statement per year.
- Defined Benefit Plans: Must provide at least one paper benefit statement every three years.
- One-Time Notice: Plans must furnish a one-time paper notice to individuals who first become eligible on or after January 1, 2026. This notice must explain their right to opt out of electronic delivery and request all ERISA-required documents on paper.
- No Delivery Fees: Employers would be prohibited from charging fees for paper statements, even for duplicate copies requested by the participant.
- Required Content: Paper statements must now include specific contact information for the plan administrator and instructions on how to switch back to electronic delivery if the participant chooses.
Exceptions to the Rule
Paper statements are generally not required if a participant affirmatively requests electronic delivery. Additionally, the “wired at work” exception remains relevant; employees who use a computer as an integral part of their daily job duties may still receive digital disclosures under the 2002 Safe Harbor guidelines without triggering the annual paper requirement.
Recommended Next Steps for Employers
To prepare for these potential changes, organizations should begin by reviewing their current disclosure methods to identify which electronic safe harbor is in use and how the new rules will apply to their specific workforce. It is essential to coordinate with plan recordkeepers to ensure systems are updated to support hybrid delivery without prohibited fees and to update onboarding procedures to include the mandatory one-time paper notice for new participants starting in 2026. Finally, employers should review all governing plan documents, such as the Summary Plan Description, to ensure internal policies accurately reflect these updated distribution standards and maintain overall compliance.
HR Works will continue to monitor this topic and provide more information as it becomes available.
