Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Employment Law StrategistLJN NewslettersNewsSections

Employee Benefits Administration Goes High Tech ' Almost

By Neal S. Schelberg and Ted Tywang
October 24, 2011

Employee benefit plans have many reporting, disclosure, filing, record retention and participant interaction obligations under ERISA and the Internal Revenue Code, the scope and breadth of which have only increased in recent years. By most accounts, utilizing new technology for paperless plan administration dramatically reduces the costs and burdens of complying with these requirements and is more environmentally friendly than traditional hard copy administration. It is hardly surprising, then, that employee benefit plans' use of, and interest in, electronic media has exploded over the past decade. According to a 2009 survey conducted by the Profit Sharing/401k Council of America, over 90% of all plans surveyed offered balance inquiries and investment changes online. Further, more than three-quarters of the plans allowed for plan inquiries via the Internet, more than two-thirds gave participants the opportunity to make contribution changes online, and well over half offered online enrollments. And these numbers have likely increased since this survey.

There are numerous methods by which employee benefit plans can furnish information electronically to participants and beneficiaries. The most common method is through a continuous access website, often requiring secure login, to which plans post documents and information. For content generally available to the public, plans may use a public continuous access website or a variety of other methods, including plain text emails or attachments. Some plans utilize a private computer network known as an intranet to communicate with participants and beneficiaries. Despite the numerous advantages of these methods, plans are only able to utilize them to the extent permitted by the U.S. Department of Labor (DOL )and the Internal Revenue Service (IRS) regulations.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

Disconnect Between In-House and Outside Counsel Image

'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.