Electronic Statement Delivery

[FundeK]

Can anyone point me to information on the delivery of participant statements in an electronic format? Do you have to give at least one paper statement per year, or can you communicate all statements electronically?

Also, I am not sure where to locate the DOL's safe harbor guidelines regarding electronic communciation. Can anyone help?

[E as in ERISA]

The DOL electronic disclosure regulations are at http://www.benefitslink.com/erisaregs/fina...cdisclosure.pdf

They allow active employees who have regular access to computers as part of their jobs to be provided the information electronically. All other employees must satisfy the notice and consent requirements of the regulations before they can be provided information through electronic delivery. (And then paper must be available upon request). Unless either all of your employees have regular access to computers for work purposes (or you are including data about access to computers in the info you provide to the administrator), then you probably need to satisfy the notice and consent requirements.

There is not a specific requirement to provide an annual statement. ERISA 105(a) requires that a statement be provided upon request (maximum once a year). The electronic disclosure regulations do not appear to apply to this requirement -- no notice and consent.

ERISA 105© requires that a terminated participant be provided with the info, if any, reported on the Form 5500 Schedule A. That information is subject to the electronic disclosure regulations -- notice and consent required.

If a plan is intended to satisfy ERISA 404©, those regulations require that participants be provided information about values of shares, expenses paid from their account, etc. (some must only be provided upon request). Some of this info is likely satisfied through statements. That information is subject to the electronic disclosure regulations -- notice and consent required.

Enron bills that are still pending in Congress contain annual/quarterly statement requirements. It is likely that if those pass the DOL would make them subject to the electronic disclosure regulations.

[FundeK]

If you give a participant a choice to view their statement online OR receive a paper copy, does this meet all requirements for participant statements?

[E as in ERISA]

Probably not.

[k man]

i think it is sufficent as long as you inform the participant that they must request a paper copy if they want one.