ERISA question of delivering SPD

We have had revisions done to our SPD and per DOL request we are to provide to each member of our insurance fund. I sent this exact request to the DOL who confirmed it was an acceptable way of delivering, but Due to they do not give legal advice that we had to speak w/ fund counsil to confirm
It meets standards outlined in link below.


Explanation of approach(taken from
Email sent):

In leui of sending a 28 page document via usps to ensure every plan participant had an updated copy of the Summary Plan Description as it has changed recently we were interested in an alternative acceptable form of delivery as in pricing this out to 2500 people using our mailing service cost $8450. An alternative for us which would save significant revenue is to send to each member a 1 page letter instead on letterhead which contained a url to that exact document, very clear description on what it is and how to view, and additionally a QR code that took them to their exact Summary Plan Description online where they could view/print/download/etc, and also a phone number where they can call and we can email or send entire document on request. This would save about $6100 on that mailer.


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The dol said this was acceptable for them assuming the Plan believes that it meets the requirements of Section (c) “Disclosure Through Electronic Media” of our Regulations (available here: 29 CFR § 2520.104b-1 - Disclosure.).


The only part me as a Tech professional and a non attorney wanted to endure was we do not have consent to send electronically…. But i do not believe that is relevant as we are not contacting anyone electronically, we are only provided information telling them they can get electronically or via usps or email if they prefer and links and contacts for each.

Would legal opinion be this approach is kosher to meet standards of above requirements on link? Our fund attorney has Not provided legal opinion.
Thanks

 

Thanks, that is my issue IANAL as well and don't want to assume because i dont see an issue doesnt mean there isnt one

 

we do not have emails. We have phones. The structure of the requirments is so anyone that wants it clearly can get it. Although sending 28 pages is an option, sending a single page financially makes more sense and a qr code, url, along with phone number that says if you prefer to receive in the mail or email reach us here seems to suffice making something available to anyone who wants it.

providing something electronically from a qr code seems very ok logically but the person who wrote the law has a lot on consent of electonic delievry. Seeming scanning a qr code or going to a url indicates intiiative and consent but again not a lawyer and i know nodda

 

With all that being said… if i was a client and hired you to provide a legal opinion, factoring in the dol has agreed to accept…. Would your advice be to eat the cost and pay the premium, or to proceed the financially better way for the fund(which benefits membership) as documents were clearly made accessible by the average person and consent is granted by initiative to view wheb they take out their phone and scan the qr(or if there was a problem they could request one of the other methods)

legal opinion is so confusing to me… it contains the word opinion yet I have never seen a clear threshold. Consent for electronic delivery is referencing if we sent email or sms, and delivery via usps of 4 simple
Options (scan, call, email, or type url) sufices for making readily available to all… if the fund had 30 million dollars its a no brainer to pay a premium but our fund could better serve members saving $6500

 

I ask strangers because this is a forum and i interpreted as a place to ask opinions such as if I was a client and paid you, would your legal opinion be this is a way of delivery that would meet regulations.

Dol has said they accept that as an acceptable delivery method, but they stated they do not give legal opinion so have counsel review electronic document policies if we are providing electronically. All seem clear with exception of consent. Delivery method of information is usps, which involves the receiving member to initiate getting a document, so does that in a legal opinion negate consent required as the action to get us consent(ie if you scan a barcode you initialize the request for document).

We do have on high retainer counsel, and their point of view was lets get it out and pay the premium regardless of his opinion which i accept as an acceptable method, but at a $6500 savings and Fund costs are a main topic of DOL discussion and this type of delivery over a 2 year span saves the fund more than certain entire salaries due to the quantity of mailers we do. There are ample benefits. It is going to cause a headache for me to revisit and state we still wanted to Pursue his opinion so prior to doing so i wanted perspectives of people more qualified than i.

Thanks

 

That being said going to your url and the member is something the member is made aware of, and you do not get prior consent to have that document delivered electronucally via your intranet to them via browser correct? The action of navigating to the document is them giving consent on your fund they want to have the said document provided to them electonically, correct?

 

So you are the guy who has founded the only lawfirm where costs are never an issue to their clients. Noted.

 

i respect your perspective, but the disclaimer clearly states it is for getting opinions for general purpose, and the forum implies in legal topics…. Those opinions shared by a few were to get other opinions. All good i appreciate the people who gave their actual opinion of the material in the scoped request. I appriciate the help even if ultimately i didnt get what i was hoping to get, and that was an opinion on only the information and regulations provided. I understand that you view this forum as no one should request those types of opinion for any purpose. The disclaimer is like any website disclaimer and that is to ensure no one takes any said advice as the be all end all, or even to be accurate…. which was never an intention. I just wanted to gauge if there was a common conclusion scoped to only the regulations, and whether legal opinion(non binding), leaned one way or another.

 

I dunno, I just fealt i was a place providing legal help, information, and advice to the general public. Possibly a site to be used as a legal resource for business professionals and the average person to help interpret the law?

 

That is fair enough.

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