Compliance News | August 15, 2023
The DOL’s pension office is seeking data and suggestions to help it address numerous obligations for disclosure guidance under SECURE 2.0. The DOL request for information (RFI) addresses nine areas of SECURE 2.0 and asks 31 specific questions.
The DOL is asking for comments by October 10, 2023.
The SECURE 2.0 Act (SECURE 2.0) was enacted on December 29, 2022 as part of the Consolidated Appropriations Act, 2023. SECURE 2.0 was a follow-up to the earlier SECURE Act and contains numerous individual provisions. (For an overview of SECURE 2.0’s provisions, see our January 4, 2023 insight, “SECURE 2.0 Retirement Reform Becomes Law.”) Some of those provisions require the DOL to issue guidance on disclosure to participants and may involve the DOL developing model notices.
SECURE 2.0 also requires the DOL, the Treasury Department and the PBGC to conduct a broad review of existing reporting and disclosure requirement and how to simplify and make more understandable existing disclosures. That broad study is not addressed in this RFI.
In general, in the RFI, the DOL is asking plan sponsors and participants:
However, the questions are broken down into nine topics (covering 11 provisions of SECURE 2.0).
The topics addressed and example questions are as follows:
The RFI is just the DOL’s preliminary step in gathering information to address the changes in law. After reviewing the information provided, the DOL will propose regulatory guidance and model language. It will ask for comments on the proposals and models.
It is also worth noting that separate from this RFI, the DOL, in combination with the IRS and the PBGC is required to look at existing disclosure requirements with an eye to making them easier to understand and less burdensome.
This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.