Practical advice for using electronic media to disseminate participant notices, disclosures, elections, and consents

Practical advice is presented for plan sponsors and their service providers in using electronic media to disseminate participant notices, disclosures, elections, and consents. A side-by-side comparison of the IRS and DOL rules applicable to such disclosure and a chart that catalogs the regulatory requirements applicable to each type of document are included. The IRS regulations contain two methods for providing notices electronically: one method requires the recipient's prior consent to receive notices electronically and an alternative method does not require prior consent. However, the recipient must have an "effective ability to access" the medium used to provide the notice, among other requirements. The DOL regulations contain two sets of rules for providing electronic notices and disclosures. There is one set of rules for participants who have the ability to "effectively access" documents furnished in electronic form at the location where they work. The IRS regulations only provide one method for electronically making elections and consents that are required by statute or regulation to be in writing.