If an employer (that is also the plan administrator) sends the notice of the right to elect COBRA coverage to a former employee, but the notice comes back to the employer as undeliverable. Is the employer relieved of any further obligation to deliver the notice, even though it has actual knowledge that the notice was not received?

The Department of Labor believes that COBRA election notices must be furnished using a method that is reasonably calculated to ensure actual receipt.  (69 Fed. Reg. 30084, 30091) (May 26, 2004).  This standard focuses on the reasonableness of the procedures used to furnish COBRA notices and does not require guaranteed delivery.  Whether the method of delivery complies with the standard depends on specific facts and circumstances.  Without expressing an opinion on correctness of the decision, the DOL sited the court decision in DeGruise v. Sprint Corp., (5th Cir. 2003).  In DeGruise the 5^th Circuit rejected the notion that the employer in that case had an affirmative duty to resend COBRA mailings that were returned by the postal service.  The court in DeGruise held that sending election notices by certified mail, return receipt requested, satisfied an employer's COBRA obligations even though the notices had been returned as undeliverable due to post office mistakes.