Postal Service Manual Section 608.11-Who Cares?

If you are a retirement plan sponsor or pension professional, hopefully you already know (and care) about the addition of a rule on “Postmarks and Postal Possession” to the U.S. Postal Service’s Domestic Mail Manual. Why? ERISA attorneys explain that there are serious implications related to mandatory notices, communications and filings. 

Guidance for Retirement Plans: Postmarks and Postal Possession

Perhaps the January 8, 2026, Postal Bulletin was not on your reading list (or social media feed)? Shucks, right? Well, head’s up: revised Section 608 of the U.S. Postal Service’s Domestic Mail Menu, has a new section “to clarify postmarks and postal possession.” This matters to anyone with responsibilities for the company sponsored retirement plan, given the range of notifications, communications and filings that must adhere to the timelines of the Department of Labor (DOL), and the Internal Revenue Service (IRS). Specifically, Groom Law Group points out that this shift in postal protocols is consequential for:

• Tax returns, payments, extensions, and other IRS correspondence;
• Benefit claims and appeals where administrative deadlines often hinge on postmark evidence;
• Compliance and reporting filings that require mailed submissions by a specific date; and
• ERISA-required notices and communications.

While postmark dates may seem trivial to business owners, Groom attorneys underscore that it remains essential to pay attention to deadlines and postmarks: “Many federal and state deadlines, especially in tax and benefits contexts, rely on the postmark date as the legal filing date for mailed documents under statutes such as Internal Revenue Code Section 7502 (“timely mailing, timely filing”). If the postmark date is after the statutory deadline, regulators may treat the filing as late, even if the item was dropped off with USPS before the deadline.” To avoid consequences such as penalties for late notifications and filings, and “preserve rights in time-sensitive filings,” Groom’s attorneys recommend:

• Presenting critical mail pieces at the USPS retail counter and requesting a manual postmark on the date of deposit;
• Using certified or registered mail or obtaining a certificate of mailing to provide additional proof of timely submission;
• Building in filing buffer time to account for potential processing delays;
• Electronic filing whenever possible; and/or
• Ensuring staff and compliance teams are fully educated on the practical implications of the updated postmark rule.

Good To Know: Honest Mistakes Become Out of Pocket Expenses

Under the high standards of the Employee Retirement Income Security Act (ERISA), honest mistakes can evolve into serious and expensive problems more quickly than most retirement plan sponsors understand. Why? ERISA doesn’t care that a fiduciary shortcoming, like a late notification or communication to participants, was an unintended error. The law, as enforced by both the DOL and the IRS, cares only that standards put in place for the protection of the retirement savings of employees were not met. For business owners, the costs of investigations and penalties related to “honest mistakes” are out of pocket expenses—and add up by the day. ERISA allegations can even lead to civil litigation, with defense averaging $600—per hour. 

In our experience with ERISA compliance at Colonial Surety Company, retirement plan sponsors often stumble over two areas of confusion. First, they erroneously assume that their ERISA Bond protects them personally in the event of errors and oversights. This is simply not true: the DOL required ERISA Bond only protects the plan and participants against acts of fraud or theft. Second, many retirement plan sponsors believe that outsourcing plan services relieves them of their fiduciary obligations. This is also an incorrect assumption: under ERISA, the selection of  service providers is in and of itself a fiduciary act. In addition to the diligence required when choosing service providers, plan sponsors remain obligated for continuous monitoring.  

As a retirement plan sponsor, it’s best not to wait for a Department of Labor investigation, participant complaint, creative plaintiff attorney, or any combination of these, to expose an error. Colonial Surety Company makes it easy and affordable to secure your business, your plan, and your personal assets today. Arm yourself with our convenient Fiduciary+Cyber Liability Insurance Package now and you’ll have: 

• Fiduciary Liability Insurance: Up to $1,000,000 in coverage for defense and penalties in the event you are accused of mistakes in carrying out your duties to the plan.
• Cyber Liability Insurance: $50,000 of coverage ( included at no extra cost) to address the DOL’s strict standards for response and notification services following cybersecurity incidents. (Colonial Surety Company’s Cyber Liability Insurance explicitly covers both the retirement plan and this business.) 

Quote and Obtain Fiduciary+Cyber Liability Insurance Here

Why Colonial Surety Company?

• A-Rated Excellence: Rated “A” (Excellent) by A.M. Best.
• Legacy of Trust: Protecting business owners since 1930.
• National Reach: Fully licensed and Treasury-listed across all 50 U.S. states and territories.