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Release Date: 04/08/2002
Release Number: 02-11
Contact Name: Gloria Della
Phone Number: 202.693.8666
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Washington, DC - The U.S. Department of Labor today published
a final rule expanding the options available for employee benefit plans
interested in using electronic technologies to communicate employee benefit plan
information. The rule also sets standards for administrators, employers,
and others using electronic media to keep employee benefit plan records as
required by the Employee Retirement Income Security Act (ERISA).
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“We are opening the way for workers and their families to take
advantage of 21st century technologies when receiving benefit plan
information,” said Secretary of Labor Elaine L. Chao. “ This rule is designed
to encourage the use of new technologies for communicating information to
participants and beneficiaries in ERISA-covered pension, group health and other
employee benefit plans. We expect participants and beneficiaries to benefit
through improved timeliness, quality and accessibility of information that will
flow from instant, on-line availability and access tools such as hot-links and
search queries. Plan sponsors will save on expenses from the elimination
of printing and mailing costs associated with traditional paper disclosures.”
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The final rule covers electronic disclosures at work and
beyond the workplace, such as at people’s homes, where certain conditions
designed to protect participants and beneficiaries are satisfied. For
example, for non-workplace communications, participants and beneficiaries must
be given certain basic information necessary to make an informed decision about
receiving documents electronically, and then affirmatively consent to receive
plan communications in electronic form. The consent provisions were
modeled after the consumer consent provisions in the Electronic Signatures in
Global and National Commerce (E-SIGN) Act. The final rule also provides
that participants and beneficiaries always have a right to a paper version of
electronic disclosures on request.
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The rule continues to be a “safe harbor,” and does not
foreclose other means by which plan administrators might use electronic
technologies to satisfy disclosure obligations under ERISA.
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The final rule applies to all reports, statements, notices and
other documents required to be furnished under Title I of ERISA over which the
department has regulatory and interpretive responsibility.
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A Notice of Final Rulemaking, which includes the text of the
final rule and a discussion of the public comments the department received, is
scheduled to be published in the April 9 Federal Register.
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7775.
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