ARA Calls for Electronic Delivery Update to 401k Disclosure Default
ARLINGTON, VA, June 20, 2018 -- The American Retirement Association is calling for a change in retirement plan disclosures that could save American workers millions and enhance their retirement security.
The nation's premier association of retirement plan professionals today broadly releases a new study it commissioned with the Investment Company Institute (ICI) that concludes that shifting the default medium for 401k disclosures from paper would save 401k participants hundreds of millions of dollars annually. The study, "Why the Time Has Come to Prefer Electronic Delivery," by Professor Peter Swire and DeBrae Kennedy-Mayo updates and expands on a 2011 study, and concludes that the advantages in cost, effectiveness and efficiency of electronic disclosures are even more compelling today than outlined in the original study.
Among the study's findings:
The federal government recognizes substantial cost savings from e-delivery, why shouldn't 401k investors? In 2015, the Centers for Medicare and Medicaid Services required notices to be sent to all Medicare recipients about its Electronic Medicare Summary Notices (eMSNs). Moreover, the Social Security Administration and the 401k plan for federal workers use electronic delivery as the default method for communicating participant/beneficiary information unless an individual requests mail delivery.
"From reducing costs, providing greater access and improving the quality of notices, the benefits of e-delivery are overwhelming and undeniable," explains American Retirement Association CEO Brian Graff. "Under our proposal, those who prefer paper delivery would still have that option. But we strongly believe the time has come to unleash the power of e-delivery. After all, if electronic delivery is good enough for the Centers for Medicare and Medicaid Services and Social Security, it should be good enough for 401k participants."
About the American Retirement Association
The American Retirement Association, based in the Washington, D.C. area, is a non-profit professional organization established to empower retirement plan professionals who are dedicated to building a better retirement for Americans. The American Retirement Association is comprised of five premier retirement industry associations; the American Society of Pension Professionals & Actuaries (ASPPA), the ASPPA College of Pension Actuaries (ACOPA), the National Association of Plan Advisors (NAPA), the National Tax-deferred Savings Association (NTSA), and the Plan Sponsor Council of America (PSCA).
For more information, visit www.usaretirement.org.
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