SHRM Backs Modernized ERISA Disclosure Rules

SHRM supported a Department of Labor (DOL) proposal that would make it easier for employers and group health plans to deliver required benefits information electronically.

Under the proposed rule, electronic delivery could become the default method for certain ERISA-required group health plan disclosures, while participants would retain the ability to request paper copies. The change would replace a more complicated framework that can require employers to distinguish between employees who routinely use electronic systems for work and those who must separately consent to electronic delivery.

In comment submitted to DOL, SHRM supported the proposed electronic disclosure safe harbor as a practical step toward modernizing benefits administration. Electronic delivery can give employees faster access to plan information, make lengthy documents easier to search and navigate, and reduce the administrative burden associated with printing and mailing disclosures.

The potential savings are significant. DOL estimates that increased electronic delivery could reduce materials and mailing costs for group health plans by approximately $402 million annually.

For SHRM, modernization should make compliance more efficient without limiting employees' access to important benefits information. The proposal strikes that balance by expanding electronic delivery while preserving participants' ability to opt for paper.