A recent court case (Gertjejansen v. Kemper Insurance Company, 9th Cir. 2008) points out that even when a company posted an SPD on their intranet, they could not document that they had carried out the requirements for electronic distribution of ERISA disclosures (SPDs, etc.). The Central Florida Chapter of the Association of Legal Administrators has a related item posted on their Web site, outlining the requirements for electronic distribution of SPDs, which include:

•    A notice must be sent in either electronic or paper form to plan participants or beneficiaries when the document is provided electronically. The notice must: (a) indicate the significance of the document when it is not otherwise reasonably evident and (b) explain the participant’s right to request a paper copy
•    The plan sponsor must make use of electronic mail features or some type of notice to confirm that e-mails giving such notice of electronic postings were or were not delivered. The plan must also conduct periodic reviews to confirm receipt of the transmitted information
•    Plan participants and beneficiaries are entitled to receive a paper copy of any ERISA disclosure (i.e., SPDs) provided electronically. Where a plan participant or beneficiary requests a paper copy of a document originally provided electronically, general rules on whether a plan sponsor may or may not charge for paper copies apply

NADART currently mails paper copies of SPDs to plan sponsors for them to distribute to relevant parties. We also make SPDs available via our Web site. By sponsoring a NADART plan, we can help you determine if any of these issues apply to you. Just contact one of our representatives with your questions, either at (800) 462-3278, ext. 7161 or by e-mail at nadart401k@nada.org. You can also request details via our online Product Information Request Form.