ICI Comments on ERISA Disclosure Obligations, January 2001

Washington, DC, January 10, 2001 - The Institute filed a comment letter in response to the Department of Labor's request for information on ERISA's disclosure obligations.

The letter states generally that the disclosures currently required under ERISA, coupled with the stringent duties imposed on plan fiduciaries, ensure that participants obtain sufficient information regarding their plans. The letter notes, however, that in certain respects, ERISA presupposes the world of 1974.

In particular, because Congress, when it enacted ERISA, could not have foreseen the proliferation of participant-directed plans, there are gaps in ERISA's regulatory framework that unnecessarily limit the ability of employers to provide, and participants to receive, the information and assistance they need.

The letter, therefore, highlights areas where the Department's attention would be appropriate.

Participants in self-directed plans, such as plans that fall under ERISA section 404(c), should receive adequate information about all investment options available under their plans, rather than only those registered under securities laws.
The Department should facilitate the delivery of investment advisory services to participants by replacing current prohibitions with standards that rely on disclosure and strict fiduciary standards.
The Department should adopt and encourage electronic delivery of plan information, consistent with the recently enacted "E-SIGN" legislation.
The Department should guard against duplicating or introducing inconsistency with existing federal standards.