Letter to DOL on the RFI re: SECURE 2.0 Reporting

Dear Mr. Canary:

The American Bankers Association (ABA) appreciates the opportunity to provide comments to the Department of Labor (Department) on its Request for Information – SECURE 2.0 Reporting and Disclosure (RFI). The purpose of the RFI is to solicit public input on, and begin developing a public record for, certain provisions of Division T of the Consolidated Appropriations Act, 2023 (SECURE 2.0) that may revise, amend, or otherwise impact the reporting and disclosure framework of the Employee Retirement Income Savings Act of 1974 (ERISA). The RFI includes a series of questions, asking among other things (i) whether and how the Department should address performance benchmarks for asset allocation funds (Question 9), (ii) whether and how defined contribution plan fee disclosure requirements should be revised (Question 12), and (iii) whether ERISA plan administrators (which include our member banks acting as fiduciaries), as a condition for relying on the electronic delivery safe harbor regulation, should be required to monitor retail retirement investors in order to determine whether such investors have actually accessed or downloaded an electronically furnished disclosure (Question 21).

Our response to the RFI focuses specifically on these three questions. In summary, we believe that the disclosure and reporting regimes referenced in these questions are comprehensive, sufficient, and effective, and therefore do not require any further changes. Consequently: (i) no revisions or additions are necessary for the benchmark requirements as laid out in SECURE 2.0, Section 318, and (ii) no changes, amendments, or revisions are necessary for the requirements of Rule 404a-5 (the participant disclosure regulation). Furthermore, plan administrators should not be required to monitor the online activity of retail retirement investors in order to rely on the electronic delivery safe harbor regulation. We would be glad to meet with Department staff as it considers possible revisions to the ERISA reporting and disclosure requirements as required under SECURE 2.0-directed rulemaking and guidance.

Download the comment letter to read the full text.