Paper Distribution

Paper Distribution of Required Plan Disclosures

The Department of Labor (DOL) has established rules under ERISA concerning the distribution of various disclosures required by ERISA to employees and to participants and beneficiaries outside of the work place.   These rules establish a safe harbor for both paper and electronic distribution of materials.

Delivery Methods

The Department of Labor regulations provide examples of acceptable distribution methods.  These “safe harbors” are described below.  Please note that these provisions must comply with requirements noted in each section.

U.S. Mail

If an employer distributes material by mail, it must ensure that its mailing list is comprehensive and up-to-date.

Employers may use the following mailing methods:

• First Class Mail
• Second and Third Class Mail
  • This method may only be used if:
    • Return /forwarding postage is be guaranteed
    • Address correction is requested

Intra-Office or Insert

Intra-Office Mail

• Employers may distribute ERISA materials through an intra-office mail system provided that the system as a whole operates efficiently.

Insert to Company Publication

Materials may be provided as a special insert to a company publication provided that:

• The mailing list is complete and up-to-date
• There is a notice displayed on the cover of the publication that the ERISA materials are inside
• Steps are taken to ensure delivery to anyone who does not receive the publication

Hand Delivery

Although specified as a safe harbor delivery method, the regulations do not specify what constitutes hand delivery.

If an employer hand delivers material, it should be prepared to prove delivery, which may consist of:

• An established policy requiring hand delivery of materials
• Communication of this policy to responsible employees
• Consistent records demonstrating that delivery was made

Simply placing the material in a location that is frequented by eligible participants is NOT an acceptable method.

Additional Resources

Reporting and Disclosure Guide for Employee Benefit Plans