Electronic Communications And Pensions—Driving With Care On The Information Highway

This article was originally published in Blakes Bulletin on Pension & Benefits - January 2004

Legislation, industry guidelines and common law considerations must be weighed if plan administrators and sponsors want to take advantage of Web-based communications with beneficiaries. Reduced administration costs, up-to-date information exchange, and more convenient and accurate recordkeeping are the promised benefits for plan sponsors and administrators communicating electronically with plan beneficiaries. Is it really that easy? What technical and legal requirements must plan sponsors and administrators follow? At this early stage in the evolution of electronic communications, it is important to be aware of a mixed bag of legislation, pension industry and regulatory guidelines and common law considerations.