Midyear Check for Plan Sponsors: Communications and SECURE 2.0 Updates
As the year reaches its midpoint, retirement plan sponsors have an opportunity to step back and review how their plans are operating. Midyear can be a practical time to evaluate both compliance and participant engagement, especially as regulatory updates continue under the SECURE 2.0 Act. Recent guidance and proposed rules are placing renewed attention on how sponsors provide plan information, making communication a key focus area for 2026.
What’s Changing with SECURE 2.0
SECURE 2.0 continues to shape how sponsors administer retirement plans and communicate with participants. Questions remain around whether sponsors need to send retirement plan statements on paper in certain circumstances, even when electronic delivery is the primary method. Recent guidance provides some flexibility, and plan sponsors should confirm current requirements with legal counsel or service providers, as interpretations and implementation considerations may continue to evolve. Plan sponsors should continue to stay informed and coordinate with their service providers to help ensure compliance.
Why Communication Matters More Than Ever
While delivery requirements may change, the responsibility to communicate clearly with participants remains consistent. Under the Employee Retirement Income Security Act (ERISA), plan sponsors are responsible for ensuring that they provide required disclosures using methods reasonably designed to help ensure actual receipt.
This responsibility does not shift when third-party vendors or recordkeepers are involved. Even when service providers prepare and distribute communications, plan sponsors remain accountable for the accuracy, clarity, and effectiveness of those materials.
Clear communication can support participants in understanding their benefits, making informed decisions, and engaging with their retirement savings. In practice, this means reviewing materials regularly and confirming that they are understandable to a broad audience.
Email vs. Paper: Finding the Right Balance
In today’s work environment, electronic communication can be the most efficient way to reach participants. Email, mobile access, and online portals often can allow for faster delivery and easier interaction with plan information.
However, paper communications may still have a place. Some employees may prefer traditional delivery methods, and certain regulatory requirements may necessitate providing paper statements.
For many sponsors, the practical approach is to maintain electronic delivery as the primary method while offering paper as an available option. This can help meet regulatory requirements while still providing flexibility for participants who prefer traditional formats.
Practical Ways to Strengthen Communication
As part of a midyear check, plan sponsors may benefit from reviewing how information is presented and provided. Using straightforward language, explaining key benefits clearly, and offering information in more than one format can help improve understanding. It may also be helpful to consider how sponsors tailor communications for different employee groups, such as new hires or participants approaching retirement.
Providing access to educational resources or general, non-personalized financial education or guidance can also help support participant engagement. While these steps may vary by organization, the overall goal is to help make plan information easier to understand and act on.
Midyear Steps for Plan Sponsors
A midyear review can help identify gaps and may support readiness for the remainder of the year. Sponsors may consider reviewing their current communication strategy, confirming alignment with SECURE 2.0 requirements, and checking with service providers about any upcoming updates.
It may also be useful to evaluate whether participants are engaging with existing communications and to identify opportunities to simplify or clarify messaging. These steps can help support both compliance and participant understanding.
Final Thoughts
For plan sponsors, midyear is a good time to check in on your plan, both for compliance and for how it can help participants understand and engage with their retirement savings. Keeping communication clear and staying up to date on SECURE 2.0 changes can help sponsors support employees, but should be considered alongside other plan governance and compliance measures, while continuing to meet their fiduciary responsibilities.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.
Patricia L. Hutchinson
Director of Retirement Plan Services
AIF®, MBA