The DOL issued a Safe Harbor for electronic deliveryThe DOL has set forth requirements that would provide a Safe Harbor for the disclosure obligations under Title I of ERISA utilizing electronic delivery at the workplace The main DOL requirements for Safe Harbor delivery at the workplace are listed below, but the guiding principle is " the plan administrator shall use measures reasonably calculated to ensure actual receipt of the material by plan participants, beneficiaries and other specified individuals " (DOL regulation, Part 2520 Amended, paragraph 2520.104b-1(b)).
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The Safe Harbor for electronic delivery in the workplace only applies to individuals who have the ability to effectively access documents in electronic form at any location they are reasonably expected to perform their duties as an employee and who have access to the employer's or plan sponsor's electronic information system as an integral part of their duties. In short, availability of a kiosk will not satisfy the requirement. Putting information on a CD is the least stringent method of electronic communication, particularly for expansive information like prospectuses. With appropriate disclaimer attached to the CD notifying the participant of the ability to request paper copies (among other things), distribution by this method qualifies for the Safe Harbor . |
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