Compliance, General

Paper & Electronic Disclosure Rules

by Mara Vicentina
May 28, 2025
11:56 am

GBS Health Benefits Compliance

Paper & Electronic Disclosure Rules

Under ERISA, participant notices and other plan information must be provided in a way that is reasonably calculated to ensure delivery to all plan participants. There are two primary ways to deliver these annual notices – by paper and electronically.

In most instances the information only needs to be provided to the plan participant, who is then expected to share the information with a covered spouse or children. If the employer is aware that the participant and the dependent spouse or child are living apart, a separate disclosure generally should be provided to the dependent. College students are considered to be living at home for purposes of this rule.

Paper Delivery

Paper delivery methods include sending the information through the U.S. mail, via interoffice mail, as an insert with a paycheck, or by hand. If mailing, the information may be sent by first class mail. Simply placing the information in a common area, like a lunchroom, is not adequate.

Electronic Delivery

These annual notices may be delivered electronically as long as certain requirements are met. Recipients of electronic disclosures are divided into two groups – those with work-related computer access, and those who do not use a computer as part of their job.

An employee is considered to have work-related computer usage if:

The employee is able to access documents that are sent in electronic format at any location where the employee performs his or her job duties, and
The employee is expected to access the employer’s electronic information system as part of his or her key job duties.

Delivery Options

An employer is not required to use the same distribution method for all participants, so it may provide notices electronically to employees who use a computer as part of their job and also use paper notices for participants who do not use a computer to perform their job. Whether provided electronically or in paper, employers as best practice should:

Maintain copies of all plan disclosures sent, including the date sent and which individuals or employee groups received the information.
Use its best efforts to ensure that there is actual receipt of the notice, such as by using the return receipt or notice of undelivered email feature. If a communication is returned, the employer
must take steps to find an alternate address and re-send the information.

Employer Steps for Compliant Disclosures

1. Determine whether you have any individuals without work-related computer access.

If ALL employees have work-related computer access, and you wish to distribute electronically, you do not need to obtain consent to receive the notices electronically, skip to Step 3

If you choose paper, skip to Step 4

If NO employees have work-related computer access, you must decide whether you wish to distribute electronically or by paper

If you choose paper, skip to Step 4
If you wish to distribute electronically, you must get consent, go to Step 2 and 3

If some, but not all, employees have work-related computer access, and you are planning to distribute electronically to those who DO have work-related computer access, you still need to decide whether you wish to provide notices electronically to those who do NOT have work-related computer access.

If you choose paper for this group, skip to Step 4
If you choose electronic for this group, you must get consent, go to Step 2 and 3

2. Employees who do not access a computer as a part of their job must affirmatively consent to receive disclosures electronically and provide an address for delivery of the documents before you may use electronic delivery. Here is the process:

Affirmative consent must be “in a manner that reasonably demonstrates the individual’s ability to access information in the electronic form that will be used.”

The simplest way to satisfy this requirement is to require the consent be furnished by the employee electronically. This is because it is a reasonable demonstration of the individual’s ability to access the information.

For example, you could ask the employee to return the consent form through email.
See Example 1 on page 4 for a sample consent form.

3. After you have verified you can provide the notices electronically an employee(s) you may electronically distribute the notices by one of two options:

Attaching the notices to an email
That email must

- Express the significance of the disclosure.
- Inform participants that a paper copy is available at no cost, with instructions on how to request a paper copy.
  
  See Example 2 on page 5 for sample language

Posting the notices to a website, intranet, or online enrollment system platform.
If posting to a website, intranet, or online enrollment system platform, there is an extra step.

- The notices may not simply be posted, the employer must also send a notice that notifies the participant that the disclosure is available.
- That communication, whether by email or in paper form must:
  - Express the significance of the disclosure.
  - Inform participants that a paper copy is available at no cost, with instructions on how to request a paper copy.
  - Include clear instructions on how to access the notices. Although not required under the rules, the instructions could (for convenience): (a) include an indirect link (to website, intranet, or online enrollment system platform) with instructions how to find the notices from there or (b) include a direct link to the notices.
    
    See Example 3 on page 5 for sample language.

4. There are a few rules to follow for distributing notices by paper to some or all employees. Remember that employees who were asked to consent to electronic delivery but did not respond must receive notices by paper.

Paper delivery methods include sending the information through the U.S. mail, via interoffice paper mail, e.g. an insert with a paycheck, or by hand.

If mailing, the information may be sent by first class mail. Simply placing the information in a common area, like a lunchroom, is not adequate.

Sample Templates

Example 1: Sample Consent to Receive Electronic Health Plan Notices

I consent to the electronic delivery of health plan notices and disclosures at the email address provided below.

I may revoke my consent at any time by contacting human resources.

I understand that if my email address changes, I must contact human resources and provide my updated address.

I am entitled to request and obtain a paper copy of any electronically furnished document free of charge by contacting human resources.

In order to access information provided electronically, I must have:

A computer with internet access;
An email account that allows me to send and receive emails; and
Microsoft Word or PDF viewer.

Human resources email address: [email]

Human resources phone number: [phone number]

Name:
Email Address:
Mailing Address:
Signature:
Date:

Example 2: Sample Electronic Distribution Language by Email

Subject Line – Important notices regarding the [Employe Name] Health Plan

Attached are various required notices regarding our group health plan. It is important that you familiarize yourself with the information contained within these notices.

If you would like to receive a paper copy, contact human resources and a paper copy of these notices will be provided to you free of charge. To request a paper copy contact [Name] at [email] or at [phone number]. Also feel free to contact [Name] if you have questions about your benefits.

Example 3: Sample Language of Notices Being Posted to a Website, Intranet, or Online Enrollment System

Subject Line – Important notices posted regarding the ABC Health Plan

We have posted updated annual notices on our [website / intranet / online enrollment system]. These notices describe important information regarding our group medical plan.

After you access our [website / intranet / online enrollment system] by clicking here [add link if you wish, but it is not required], you can find these notices by [add navigation steps, instructions, or direct link].

We encourage you to read the notices at your earliest convenience.

You have the right to receive a paper copy of the notices at no cost to you. To request a paper copy contact [Name] at [email] or at [phone number]. Also feel free to contact [Name] if you have questions about your benefits.