Question of the Month – October

Question:

In preparation for the new plan year starting January 1, 2025, how can I deliver the required annual notices electronically?

Answer:

For employees to receive disclosure material electronically (for example, via email or by posting on the company’s website), the following specific requirements must be met:

• Appropriate and necessary measures must be taken that are reasonably calculated to ensure that the system for furnishing documents results in actual receipt of the information by the individual (for example, sending by return-receipt or conducting periodic reviews or surveys to confirm the delivery system is working as intended).
• In order to post a required disclosure on a company website, any of the following methods are deemed acceptable:
  • Adding a prominent link from the website’s homepage to the separate section of the website that contains the disclosure;
  • Providing directions on the website for how to replace a lost or forgotten password (to the extent one is needed); and
  • Maintaining the documents on the website for a reasonable period of time following giving notice to the employees of their availability.
• Each individual must be notified at the time a document is furnished electronically of the significance of the document when it is not otherwise reasonably evident and that the individual has a right to request and receive a paper version of the document.
• The notice requirement applies to all recipients and must be complied with each time an electronic disclosure is made.
• The system for furnishing documents must protect the confidentiality of personal information relating to the individual’s accounts and benefits (for example, measures designed to preclude unauthorized receipt of or access to this information by individuals other than the individual for whom the information is intended should be implemented).
• The disclosures in electronic format must be prepared and furnished in a manner that is consistent with the style, format, and content requirements applicable to the particular document.
• The employee recipient must be notified at the time the electronic distribution is furnished, of the significance of the document and his or her responsibility to provide a copy of the electronic disclosure to eligible dependents under the group health plan.
• Participants must have the ability to effectively access documents furnished in electronic format at any location where they are reasonably expected to perform their duties as employees and with respect to whom access to the employer’s or plan sponsor’s electronic information system is an integral part of those duties, including employees who work at home or who may be traveling.
  • If a participant does not meet these criteria and has no work-related computer access, the individual must have affirmatively consented to receive the documents through electronic media.
• The consent must be in a manner that reasonably demonstrates the individual’s ability to access information in the electronic form that will be used (requiring the consent to be furnished electronically constitutes a reasonable demonstration of the individual’s ability to access the internet).