Today, the U.S. Department of Labor (DOL) issued a proposed rule that would create a new, optional electronic disclosure safe harbor specifically for group health plans.

The proposal is designed to reduce the administrative burden and mailing costs associated with distributing required participant notices and documents.  The proposal is modeled largely after the 2020 pension plan safe harbor, with a few notable exceptions.  The proposal would apply only to group health plans – it does not extend to all welfare plans.

The new electronic delivery safe harbor would apply to notices and documents for participants, beneficiaries, and other eligible individuals who provide an email address or a smartphone number capable of receiving electronic notices.  Plan administrators would be required to provide a “Notice of Internet Availability” (NOIA) informing individuals that a document has been posted.

If finalized, the DOL estimates that this safe harbor could save group health plans roughly $372 million in the first year and close to $395 million annually thereafter.

Comments are due September 21, 2026.  

Groom will provide a more robust summary of the proposal soon.