The Employee Benefit Security Administration (EBSA) just launched deadline relief and recommendations related to the current impact of the COVID-19 pandemic, including expanding “good faith” application of electronic delivery.
According to the EBSA’s “Disaster Relief Notice 2020-21” the duration for plan administrators to furnish annual funding notices, benefit statements, and other disclosures requested by ERISA are hereby extended, as long as plan officials make a “good faith effort” to furnish required items as soon as possible. Per the novel notice, “good faith” encompasses the utilization of electronic alternative means of communicating with beneficiaries and plan participants, who the plan fiduciary believes have effective access to electronic communication, like text messages, email, and website access.
The notice also discusses compliance help on participant loan payments and contributions, plan loans, Form M-1 and Form 5500 filing relief, blackout notices, and various other universal compliance guidance on ERISA fiduciary duties.
Though plan sponsors cannot foresee a major crisis like COVID-19, we can help you prepare for the unexpected with fiduciary liability insurance. If you are an individual involved in the management of an employee retirement plan, you can face personal exposure to claims alleging breach of fiduciary duty. Fiduciaries are defended and indemnified from covered plan participant lawsuits with fiduciary liability insurance, and valuable company data and information of the plan and company are protected with cyber liability insurance—all found in our ERISA bond packages. Contact us today to obtain your ERISA fidelity bond package today.