


Retirement plan disclosure not in consumer interest

The Pension Rights Center (
Under the new regulation, individuals will receive one initial notice on paper informing them they have a right to opt out of the notice-and-access delivery system and keep getting their documents in paper. After that, all future notices will arrive by email or text. Those who want paper will have to affirmatively ask for it. Equally important under the new regulation, this information will generally only be retained on the plan’s website for one year. Accordingly, if you don’t request the paper documentation, and save it, you could lose access to this valuable information, which you may need to protect your retirement plan rights decades from now. If you prefer everything to be electronic, then make sure you track down, print out and save all of the important documents about your plan rules and your benefits.
The Pension Rights Center is participating in a call to action, a public education effort to encourage workers and retirees to “ask for paper” to protect themselves and their beneficiaries by insisting on a paper trail. Their website contains a guide for consumers; a detailed summary of the new regulation; and a list of the “top 10 worst things” about the new regulation. The Pension Rights Center is also taking steps to educate members of Congress about the pitfalls of the new regulation, and is coordinating its activities with consumer and retiree organizations, unions, and business groups.
Until this new regulation, the Labor Department followed a common sense rule: plans sent out information on paper, through the mail, unless people regularly worked with computers, or asked to go “paperless.” Although retirement plans are still allowed to use this option, it is unlikely that most plans will continue this policy.
If you continue to have problems, contact the U.S. Administration for Community Living’s Pension and Information Counseling Projects.
Finally, ask your congressional representatives to overturn the notice-and-access rule and reinstate the prior Labor Department regulations with recurring automatic paper reporting unless a “paperless” option is requested by workers or retirees.
Bottom line: When you receive a notice from your retirement plan, don’t ignore it. Insist on receiving paper statements and documents on a continuing basis and keep those records in a safe place.