Can employers send benefit plan notices to workers electronically?

Yes, Department of Labor regulations clarify which notices required by the Employee Retirement Income Security Act (ERISA) can be sent electronically. Employers can send the following notifications electronically:

• initial COBRA notices;

• qualified domestic relations order (QDRO) notices;

• qualified medical child support order (QMCSO) notifications;

• information concerning participant loans; and

• individual benefits statements.

Employers can send these notices electronically to participants, beneficiaries and other persons, such as alternate payees under a QDRO and COBRA qualified beneficiaries. However, beneficiaries and other persons must first consent to receiving the disclosures electronically. You will also have to provide them with a statement that indicates:

• the types of documents to which the consent would apply;

• the fact that consent can be withdrawn at any time;

• the procedures for withdrawing consent and updating e-mail addresses;

• the right to request and obtain paper copies of any documents free of charge; and

• any software or hardware requirements for accessing and retaining the documents.

Other requirements that must be met before notices can be sent electronically include the following:

• the plan administrator must ensure that the transmission results in actual receipt;

• confidentiality of personal information must be safeguarded;

• the electronic documents must be prepared and furnished in a manner that is consistent with the style, format and content requirements applicable to the particular document;

• the significance of the notice or disclosure must be spelled out to participants and beneficiaries if not otherwise obvious; and

• participants and beneficiaries must be given the opportunity to request paper versions of the electronic documents.