Electronic disclosure for SPDs

Plan Sponsors: Is Your Compliance Strategy Digital-Ready?

Printing SPDs is expensive, and if we’re honest, most people never read them. Electronic disclosure is a lot cheaper, faster, and can still meet a Plan Sponsor’s obligation to give every participant an SPD.

What’s the gist?

Employers can opt for electronic disclosure for employees who regularly access an employer’s system as a part of their work.

✅ Think: Employees who use corporate email on corporate devices

🚫 But not: putting a terminal on a factory floor for employees to download it, but who wouldn’t otherwise log in.

For employees who consistently access the employers system, the employer can email ERISA documents to the employee or post it on an intranet site with notice to the employees about how to access the documents.

If employees don’t consistently access the employer’s system, those employees can still opt-in to electronic communications. Employers have to make sure the employees will be able to access the information and ensure actual receipt.

And all participants have a right to a paper copy at no charge.

The Department of Labor is clear: accessibility and participant rights come first.

So, plan sponsors, are your health and welfare plan disclosures meeting the mark?

If not, ensure your processes align with ERISA requirements while leveraging digital efficiencies.