Electronic delivery of 401(k) information that could cut costs by hundreds of millions of dollars per year is a step closer to implementation.

A proposal to implement the change was sent by the Labor Department to the Office of Management and Budget last week.

The American Retirement Association, one of the organizations backing the proposal, and the Investment Company Institute estimated last year that the 401(k) industry could save more than $500 million per year if it transitions from paper to digital disclosures. The report was based on estimates that more than 80 million 401(k) plan participants receive eight mailings per year.

"We are one step closer to common sense rules on how retirement plan notices are delivered, potentially saving participants hundreds of millions of dollars a year,” ARA President and CEO Brian Graff said in a prepared statement.

The proposal is part of an executive order by President Trump in 2018 entitled “Strengthening Retirement Security in America,” which had as one of its goals “improving the effectiveness of required notices and disclosures and reducing their cost to employers promote retirement security by expanding access to workplace retirement plans."