SABC Newsletter

  Southern Administrators and Benefit Consultants, Inc.

June, 2002

The Department of Labor released final rules on the use of electronic communication and record keeping technologies by employee welfare and pension plans this week. The final rules relax and expand the scope of the proposed rules released in January 1999 which provided plan sponsors with the opportunity to use electronic communication methods, but imposed so many restrictions that not many plan sponsors found the rules useful. The final rules set forth conditions for electronic communication that are workable and therefore open a world of possibilities for distributing required disclosures electronically and consequently saving plan sponsors tremendous printing and mailing cost.

The final rule imposes different requirements for categories of individuals. The first category of individuals includes participants who have the ability to access documents provided in electronic form at any location where the participant is reasonably expected to perform his or her duties as an employee and where access to the plan sponsor's electronic information system is an integral part of those duties.  No consent for electronic distribution is required from participants who fall in this category.

The second category of individuals includes participants who do not fall into the first category (i.e., computer access is not an integral part of their work duties), former participants, and beneficiaries.  Plans must obtain consent from these individuals before attempting to satisfy ERISA Title 1 disclosure requirements electronically. These individuals must consent in  a manner that reasonably demonstrates the individual's ability to access information in the electronic form that will be used to provide the information, and has provided an address for the receipt of electronically furnished documents. Plans must provide notice  in electronic and non-electronic form prior to

obtaining the consent of the types of documents to which the consent would apply, that the consent can be withdrawn at any time without charge, and explain the procedures for paper version.           

Company Website is Permissible

DOL notes in the preamble that a company's website is an acceptable method of furnishing disclosures provided that the other conditions of the rules are satisfied with respect to the different categories of individuals as explained above.

These rules can be accessed on the Internet by going to: www.access.gpo.gov/nara/index.html. Click on 2002 Table of Contents, then click on April 9, 2002, scroll down to Pension and Welfare Benefit Administration section.

NEW REQUEST FOR REIMBURSEMENT FORM

We have updated our Request for Reimbursement form to include information that will assist us in expediting the processing of claims for Unreimbursed Medical and Dependent Care. In order to eliminate the old request form and avoid confusion, all claims after July 1, 2002, must use the new form. You may print a copy of this  form by returning to the main menu and clicking on forms and then  Request for Reimbursement from the menu.

Remember to always keep a copy of your receipts and track which expenses have been submitted. To avoid delay in processing your request, please read and follow the instructions included with your Request form to ensure proper documentation is submitted. Always include your daytime phone number so that we may contact you should we need additional information.

WE WILL BE CLOSED MAY 27TH,  IN OBSERVANCE OF MEMORIAL DAY