SPDs on a website

[Guest dlagrone]

What is the consensus in the benefits community as to a sponsor's ability to satisfy DOL regs regarding the provision of an SPD to plan participants by posting it on a designated web site? What is the consensus of the community with respect to the ability of a plan sponsor to satisfy 404© requirements by delivering 404© information solely on a website, with no manual/paper delivery of 404© information to participants?

[Guest kchristy]

The DOL has interim regulations regarding this issue, pending final guidance. I also spoke with the person at PWBA who handles this particular issue (I'm running off memory, because the file's at home), and she said that it's fine to post SPD's electronically, but here's what would have to happen if you wanted to be in compliance *without* having to give everyone paper copies:

1) Every employee must have access to their *own* PC *at work*;

2) Every employee must be notified of the availability of the SPD online;

3) There must be a reply receipt to the notification email for each employee;

4) The employer must provide a hard copy on demand to every employee that wants one.

In other words, consider online SPD's purely a convenience, for unless and until the DOL revises the regulations, you're not likely to escape hard copies for everybody.

[Guest Ron Wohl]

Putting SPDs online is a bit tricky. Unless you are using a sophisticated approach such as that of Enwisen, Inc. (their web site is www.enwisen.com), your biggest obstacle is not the DOL or rather HIPAA requirements for health care spds, but the readability of the information. Studies show that readers want to see relevant information and appreciate having a personal browser to reorganize existing information the way that meets their own definition of relevance. Also,the reader's eye falls asleep after 9 seconds if the screen does no move.

So information on the website must be written to acknowledge this rule and be short and concise. Presentation type software should be used to effect a lot of bullets and white space, while keeping with ERISA SPD rules about not showing favoritism or negativism in language or visual representation.

The rule about providing a printed document to a participant or beneficiary can easily be met by providing an email button directly to HR or Benefits that will allow a docutech-like process to print a copy of the regular written SPD to be printed and mailed to the requestor.

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[Guest Lori Senter]

Does anyone know if the interim regs are final yet or, if they're not, when they will be? Do you think there will be changes in the final regs?

[Guest Ron Wohl]

The interim and proposed regulations were open for comment until December 9, 1998. The Labor Dept. individual responsible for these regs has told me that they expect to publish the final reg the middle of April. Of course, you are permitted to rely on the interim and proposed regs until that time.

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[Guest Vicki Dungan]

Comment period on the new regs has been extended to March 99. See related postings in first topic in the message board: "ERISA: Electronic media SPDs, SARS, Record Retention"

[This message has been edited by Vicki Dungan (edited 02-28-99).]