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ERISA Plans Okayed To Use Electronic Media To Disseminate Plan Info
Health plan administrators will soon have the option to use electronic media to communicate benefit plan information to employees, participants and beneficiaries. On April 9, the Department of Labor issued its final rule on this topic for ERISA plans.
Electronic media can include email, CD-ROM, DVD, a company Web site and other forms. The rule goes into effect October 9, 2002.
The final rule permits plan administrators to electronically send all plan disclosure documents required under ERISA Title I and DOL to participants and beneficiaries at "any location where a participant can reasonably be expected to perform his or her duties as an employee," for instance, at the worksite, while traveling or at home. Computer kiosks are specifically excluded as a location. Administrators can transmit COBRA notices, HIPAA certificates of health care coverage, summary plan descriptions and summary annual reports.
Prior to receiving documents, employees and other participants must affirmatively consent to receiving plan communications in electronic form. The plan administrator must clearly specify which documents the employee is consenting to receiving. Employees have the right to request and receive these documents in paper form. The plan administrator must take steps to make sure the employees actually receive the documents.
For our clients: The BenefitPort Compliance Department is currently studying these final rules, with the goal of providing our clients in the future with detailed instructions on how to comply with electronic disclosures.
The DOL press release is available at http://www.dol.gov/dol/pwba/public/media/press/pr040802.html and the DOL regulations are published in the Federal Register, http://www.benefitslink.com/erisaregs/finalelectronicdisclosure.pdf.
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