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Now, a new bill to modernize retirement plan statements, and supporters of the bill in Congress all seem to agree that it is long overdue. “It is past time that we bring disclosure requirements into the 21st century,” said Senator Tillis. Senator Thom Tillis (R-NC), as he reintroduced the Improving Disclosure for Investors Act of 2025, requiring the Securities and Exchange Commission (SEC) to propose rules allowing for the default electronic delivery of regulatory documents to investors.
“U.S capital markets have embraced the digital age and rely on far less paper now than they did 25 years ago …,” said Senator Tillis. “Nearly 80% of surveyed Americans already utilize electronic delivery and this commonsense legislation will heighten efficiency and cut down on unwanted paper while still preserving investors’ ability to receive printed hard copies if they wish.”
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The SEC currently permits electronic delivery of certain documents, however, the agency has not seriously updated its framework in 20 years. The legislation introduced into the Senate on June 2 requires SEC to establish a means for investors to “opt out” of electronic delivery at any time and receive paper documents.
The bipartisan bill, which was originally introduced in 2024, “is commonsense legislation would allow for more efficient and convenient access to financial information for investors who already overwhelmingly choose electronic delivery to receive these disclosure documents,” said Katie Britt (R-AL), a cosponsor of the bill. “This legislation saves time and resources and reduces unnecessary costs for both financial firms and consumers.”
“Today’s economy runs in the digital age, and we need to catch up,” said John Hickenlooper (D-CO), another co-sponsor of the bill. “Cutting red tape is as simple as going paperless.”
Related: Vanguard to pay SEC $106M to settle violations over ‘misleading’ target date fund statements
Fidelity Investments is on board with the new bill, which is “a more secure, effective, and timely way to receive critical investment information,” according to statement. Charles Schwab also said the bill is “long-overdue, as a large majority of investors prefer the speed and convenience of receiving documents electronically,” according to a statement.A companion bill in the House, Improving Disclosure for Investors Act, has already advanced through the House Financial Services Committee and is making its way to the House floor. “Continuing to send customers paper disclosure notices is not only wasteful but fails to acknowledge that digital communications are safer and more effective in reaching all Americans,” said bill sponsor Rep. Bill Huizenga (R-MI).
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
