Benefit Software's Fringe Facts® Online Streamlines Electronic Delivery of Summary Plan Descriptions and Facilitates ERISA Compliance Using Automated Tracking

Santa Barbara, CA - July 17, 2007

Fringe Facts Online benefits enrollment and administration solution that not only serves as a delivery vehicle for Summary Plan Descriptions (SPDs), but also offers a comprehensive tracking feature to ensure compliance with the Employee Retirement Income Security Act of 1974 (ERISA) requirements for electronic delivery.

While electronic delivery of SPDs and other employee benefit notices can reduce costs associated with producing and mailing paper versions, employers often have no way-or use ineffective, time consuming means-to track delivery and determine whether employees have received the notice or read the appropriate documents to ensure compliance with ERISA requirements. The Department of Labor requires that plan administrators obtain consent from participants to receive electronic distribution of the SPDs and that they obtain a receipt showing that the employee has received the notice and has access to the SPDs. In addition, employees may be required to acknowledge their notification of the availability of the SPD before they are able to enroll in their benefit plan or access a hosted benefits communication Web site.

“Our focus has always been on helping human resource professionals and plan administrators streamline the delivery of benefits and employment information in order to ensure compliance and improve the efficacy of their communications with employees, ” says William Smith, vice president of sales and marketing at Benefit Software, Inc. “This tracking feature is a perfect complement to our product suite, which offers an end-to-end solution - from online enrollment to Web-based total rewards statements - that reduces costs, improves the end-user experience, and eases the administration and management functions associated with the employee benefits process.”

The Fringe Facts Online service generates e-mail notifications that include a link for employees to access their benefits Web site where they are presented with a notice that instructs them to click one of two links to either view or not view the SPD. A “yes” response will take them to the main menu where they can select those SPDs they wish to read. A “no” response will bring up instructions on how to view the SPDs at a future time when returning to the Web site. The information can be personalized so that employees view SPDs only for those benefits for which they are eligible. The Fringe Facts Online service monitors and tracks individual employee responses using time and date stamping and automatically generates follow up e-mails to remind individuals who have not responded. The SPDs can also be linked to other resources and tools, such as online calculators, and are available for access 24/7.

This service can also be used to provide electronic delivery and tracking of Financial Statements, Employee Handbooks, Policy Manuals, Health Insurance Portability and Accountability Act (HIPAA) Notices, Medicare Credible Coverage Notices, Women's Health and Cancer Right Notices, Newborn's and Mother's Health Protection Act Notices, or any other documentation that must be provided to employees.

Administration and Tracking Features

Fringe Facts Online provides an end-to-end solution for electronic SPD distribution, delivery, and tracking including the following functionalities:

• SPDs can be loaded in Adobe® Acrobat® PDF format to a designated benefits page on the employer's Web site or a site hosted by BSI
• Revisions to SPDs can be easily uploaded without charge
• A tracking feature monitors whether documents or links have been viewed by employees, including the date and time each employee clicked either of the links
• E-mail reminder messages are automatically sent at pre-determined intervals to remind employees (as well as their managers) who have not responded
• Undeliverable e-mail messages are forwarded to a specially designated mailbox for follow up
• Administrators can generate reports (which can be easily downloaded) detailing employee responses (whether they viewed the SPD), as well as the date and time of each response
• A CD, which is provided at the end of a designated period, provides a detailed report of employee responses (yes, no, or no response) to the SPD notice
• Other applications include the ability to post and track forms such as Health Risk Assessments or any other required documentation and information

This service is available as a component of the Fringe Facts Online product suite, on a standalone basis to track SPDs and other documents, and as a feature of TotalComp Online™, which provides employees with online total rewards statements that communicate the cost of employer-paid benefits in addition to salary and other “paid time-off” benefits.

About Benefit Software Inc.

Benefit Software Inc. (BSI) is a leading provider of highly effective employee benefits communication solutions. In addition to designing and publishing PC software applications, BSI offers outsourced printed benefit statement services through its Professional Services team and is an Application Service Provider (ASP) for Fringe Facts Online, a comprehensive, customized Internet-based employee benefits communication solution. The dedicated staff at BSI have backgrounds in human resources, employee benefits, insurance, finance, program development, software support, and training. Incorporated in 1978, the company has helped over 5,000 customers find solutions to their employee benefits communication problems. The company continues to develop new benefits communication solutions for employers and insurance professionals. For more information, visit www.bsiweb.com.

For Further Information Contact:
Angela Stees, Public Relations Manager
Benefit Software Inc.
(800) 533-1388 x6217
pr@bsiweb.com