January 2024 News

RFI for Reporting and Disclosure Requirements

The Department of Labor, Internal Revenue Service, and Pension Benefit Guaranty Corporation (the agencies) jointly issued a request for information (RFI) around reporting and disclosure requirements. This RFI is in response to Section 319 of the SECURE 2.0 Act of 2022 (SECURE 2.0), which requires agencies to complete a review of current requirements and make recommendations to Congress by December 29, 2025.

RFI Highlights

The RFI consists of 24 questions where the agencies are seeking responses in an effort to reduce compliance burdens as well as ensure timely receipt and a better understanding of the information plan participants and beneficiaries need. Below is a partial list of the questions being asked:

Is the effectiveness of disclosures impacted by the number of annual notices and disclosures required?
Does the timeliness of the disclosure impact the likelihood that participants and beneficiaries will pay attention to them?
Is there content that may be duplicative, redundant, or inconsistent?
What factors impact participants and beneficiaries understanding the notice or required disclosure?
What tools, if any, are used to confirm whether participants and beneficiaries are accessing disclosures?
Do plans collect data on participant and beneficiary levels of engagement in response to required notices and disclosures?
What data is available around how often, when, and how are participants and beneficiaries updating their contact information for plan purposes?
What method is used and/or preferred to deliver disclosures and notices?
To what extent do model notices reduce the cost to plans?
What are the aggregate annual costs to providing required notices and disclosures?
Are instructions for required reports back to the agencies clear and helpful?
Do the filing methods for reporting back to the agencies need to be updated or improved?

Comments

All comments will be shared across the agencies and must be received no later than April 22, 2024. Written comments must be identified by RIN 1210-AC09 and may be submitted using one of the following methods:

Federal eRulemaking Portal at www.regulations.gov.
Mail to Office of Regulations and Interpretations, Employee Benefits Security Administration, U.S. Department of Labor, Attention: Request for Information – SECURE 2.0 Section 319 – Effectiveness of Reporting and Disclosure Requirements, Room N-5655, U.S. Department of Labor, 200 Constitution Ave NW, Washington, DC 20210.

The subject matter in this communication is educational only and provided with the understanding that Principal^® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals and other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

Insurance products and plan administrative services provided through Principal Life Insurance Company^®, a member of the Principal Financial Group^®, Des Moines, IA 50392.

Principal Life Insurance Company, Des Moines, Iowa 50392-0001, www.principal.com, Principal^®, Principal Financial Group^® and the Principal logo design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and service marks of Principal Financial Services, Inc., in various countries around the world.