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Summary Plan Description

Electronic Distribution of SPDs

Can a Bank meet the distribution requirements solely by e-mail or electronic transmission of the SPD?

Probably not. Electronic transmission typically requires additional steps and follow up rather than simply sending and e-mail. Some individuals may not meet the requirements and may need to receive paper copies. Requirements for electronic transmission of SPDs have been evolving and Banks should consult with counsel to determine current requirements before proceeding. The plan administrator should become conversant with Department of Labor standards for storing electronic records.

Electronic media cannot be used for those with no computer access.

Individuals with computer access fall into the following catergories:

Those who have work-related computer access; or
Those who have computer access that is not work-related.

Work-Related Computer Access. Disclosure may be made electronically to any participant:

Who has the ability to access documents at any location where the participant resonably could be expected to perform employment duties; and
Whose access to the electronic information system is an integral part of those employment duties.

Making a computer kiosk generally available for use by participatns would not meet this requirement. The Employer would need to make a determination for each employee that he or she had this type of access (and presumable reassess that determination each year).

For those with computer access, the initial requirements include the following:

The Plan Administrator must take appropriate and necessary means to ensure that they system for furnishing documents results is acgual receipt of the transmitted information (e.g., using return-receipt or notice of undelivered electronic mail features or conduction periodic reviews or surveys to confirm receipt of the transmitted information).
The SPD must be prepared and furnished in accordance with the style, format, and content requirements for SPDs.
Written or e-mail notice of the significance of the SPD must be provided to each recipient, at the time the electronic document is furnished. This notice must be provided each time an electronic disclosure is made. It also must notify the recipient of the right to request and obtain a paper copy of the SPD.
A paper version of the elctronic SPD must be available upon request (at no charge).

No Work-Related Computer Access. For individuals who need to receive the SPD, but do not have work-related computer access as defined above, electronic distribution may be possible if the following are met:

The individual provides and address for delivery of the documents and affirmatively consents to electronic disclosure. (Consent may be given electronically.)
Where discolure is made through the Internet or other electronic communication system, the individual must affirmatively consent in a manner that reasonably demonstrates the individual's ability to access information in the electronic form that will be used.
For any type of electronic disclosure, the consent must occur after the individual has been provided with a statement that explains:

The types of documents that will be provided electronically;
That consent canbe withdrawn without charge;
The procedures for withdrawing consent and updating information (e.g., address for receiving electronic disclosure);
The right to request a paper version and that no charge applies; and
The electronic delivery system and what hardware and software will be needed to use it.

Again, the rules are complex and change from time to time. Consult with counsel.

See Department of Labor Reg. Sec. 2520-104b-1(c).

Can a Bank meet the distribution requirements by simply posting the SPD on its website?

No. Posting the SPD on the website may be simple enough, but as discussed in the Special Distribution Requirements section, there are extra steps that must be taken in order to meet the distribution requirements. Also, it is likely that electronic distribution will not be acceptable for all individuals, thus requiring paper distribution. (The law is evolving in this area. Check with your counsel for details on the current status of electronic distribution requirements before proceeding.)