Possible Expansion of the Permissible Use of Electronic Disclosure
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Topics: disclosure, dol, electronic, erisa
In April 2011, the Department of Labor (DOL) released a Request for Information asking the employee benefits community to comment on the possible expansion of the permissible use of electronic disclosure by employee benefit plans.
More specifically, the DOL is now exploring whether and how to expand or modify the current standards under ERISA applicable to the electronic distribution of required plan disclosures that were first established in April, 2002.
In response to this announcement by the DOL, Travis is currently investigating how to add new capabilities into the system that would incorporate the possible expanded availability of electronic disclosure. For example, if the DOL determines that COBRA Election Notices may be electronically provided to certain individuals, Travis is researching how the system could send an email to such QBs rather than have the COBRA Election Notice print in paper form, and whether the electronic communication can be provided in a sufficiently secure manner.
As background, the Department of Labor provides standards that govern the delivery of all information required to be furnished to participants, beneficiaries and other specified individuals under title I of ERISA. The DOL dictates that Plan administrators must utilize delivery methods that are “reasonably calculated to ensure actual receipt of such information by plan participants, beneficiaries and other specified individuals,” which includes Qualified Beneficiaries. In the Request for Information, the DOL acknowledged that electronic disclosure can be as effective as paper based communications and would come at a lower cost and reduced administrative burdens.
Travis customers should simply be aware of the DOL’s review of the use of electronic media so that you can formulate a plan of what to do should certain updates take place. If the DOL expands the types of COBRA documents that may be distributed electronically, Travis wants to be able to respond quickly with additional capabilities.
For further information, please review the Federal Register (76 Fed. Reg. 19285).
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