Electronic Distribution of Notices

Following is a summary of the most common methods for electronic distribution of notices. Please note, this is not an all-inclusive list of allowable methods.

Integral Part of Duties Method

Participant consent to receive electronic notices is not required if:

  • The participant has the ability to access electronic documents at any location where he/she is “reasonably expected to perform duties as an employee;” and
  • The participant’s access to the employer’s information system is an “integral part of his/her duties as an employee.”

The determination of “reasonably expected to perform duties as an employee” and “integral part of his/her duties as an employee” is not clearly defined and is made by the Plan Administrator.

Affirmative Consent Method

Participant consent to receive electronic notices is required if the “Integral Part of Duties Method” does not apply. In order to give consent, the plan must provide the participant with a statement that contains the following information:

  • Identification of the documents to which the consent applies;
  • The hardware/software requirements to access and retain the documents;
  • An explanation that consent may be withdrawn at any time;
  • The procedure for withdrawing consent or updating e-mail address information; and
  • An explanation of the right to request paper copies of the documents upon request.

Providing notices electronically through a common area computer, such as a kiosk, would not satisfy these requirements.

NOTICES ELIGIBLE FOR ELECTRONIC DISTRIBUTION

(not an all-inclusive listing)

Summary Annual Report Summary Plan Descriptions
Summary of Material Modifications Automatic Enrollment Notice
Safe Harbor Notice Safe Harbor Automatic Enrollment Notice
Qualified Default Investment Alternative Notice (QDIA) Qualified Automatic Contribution Arrangement Notice (QACA)
Participant Fee Disclosure Notices Blackout Notice
PPA Annual Notice PPA Quarterly Notice
PPA Annual Memo Annual Vesting Notice

This document is intended as a high-level overview only and may not contain all the requirements applicable to your situation. Federal income tax laws are complex and subject to change. The information in this memorandum is based on current interpretations of the law and is not guaranteed. Neither TRA, nor its employees, its agents, brokers or registered representatives gives legal or tax advice. You should consult an attorney or competent tax professional for answers to specific tax questions as they apply to your situation.