Posting SPD on Intranet

Posted by BAS - 16 April, 2015

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A recent court decision out of the Eastern District of New York found that posting a summary plan description (SPD) on a company Intranet did not satisfy the electronic disclosure rules under ERISA. A SPD is considered properly distributed only if the communication satisfies Department of Labor Regulations.  

In Thomas v. CIGNA Group Ins. (E.D.N.Y. 2015), the court held that posting on an Intranet without additional action does not satisfy the distribution requirements.  

In this case, Ms. Thomas, had life insurance through her employer’s ERISA plan. Ms. Thomas became disabled and stopped working and paying premiums. After her death, her beneficiary filed for life insurance. The insurer denied the beneficiary’s claim arguing that Ms. Thomas did not request a premium waiver and therefore was not covered by the plan at the time of death. The beneficiary sued saying that the premium waiver requirement was not communicated to the participant. 

The employer argued that Ms. Thomas should have known about the waiver requirements since they were explained in the plan’s SPD. The SPD was not specifically forwarded to participants, but was instead made available on the employer’s Intranet site. 

The court found in favor of the beneficiary and said that posting an SPD on an Intranet site was not adequate distribution and did not meet ERISA’s electronic disclosure rules. Those rules require the employer to provide notice to employees directing them to the website where the SPD is located, notification of the SPD’s significance, and notice of the right to request a paper copy. The rules would also require notice each time a new electronic document is furnished.

For more details on the electronic distribution rules, see our prior article by clicking here

All employers must be aware of the rules regarding distribution of notices electronically and should review their distribution practices. While placing SPDs on a company Intranet or plan resources library is an important component of benefit communications, it alone may not satisfy the Department of Labor’s electronic distribution rules without notifying participants of the availability of the document, the significance of the document, and the right to request a paper copy of the document.


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