Am I compliant if I send out retirement notices by first class mail and don’t receive any back marked “Return to Sender”?

Short answer? No. 

Now for the long answer. 

Many plan sponsors believe that if they don’t get United States Postal Service (USPS) returned mail, it means they mailed their notices properly and those notices were received. They may also mistakenly believe their only responsibility for locating “missing participants” is to find the participants whose mail has been returned. 

While addressing mail that’s been “returned to sender” is part of the process, it’s not the only best practice to ensure your notifications are compliant. 

The USPS only provides “return to sender” services in two cases:

• If the mail is sent to an address that has been recorded in the national change-of-address database as an undeliverable address. 
• If the address is not a physical address any longer (i.e., the address no longer has a mailbox). 

Therefore, to be compliant, you must understand that the national change-of-address database only holds information for a set period. After the request’s expiration, the USPS will no longer return the mail to the sender; they’ll deliver it to the address on the letter. 

True story time. My mother-in-law made a change-of-address request when she moved from Texas to New Orleans. For the first 90 days, her mail was forwarded as we expected. Still, after the 90 days expired, one particular correspondent who was unaware of her move continued to send mail to her Texas address. Finally, it was delivered to that location, where the new resident determined what to do with it. 

That scenario might be okay in terms of “junk mail,” but can you think of anything you wouldn’t want a stranger to receive on your behalf? 

Because many plans only send notices annually, or in the case of significant changes, the required information may be sent outside of the national change-of-address timeframe. In that case, the notice will be delivered to the old address, where someone other than the participant will receive it.  

So, suppose a plan sponsor only locates missing participants based on returned mail. In that case, many participants who have changed their address won’t receive their required notice, which could create a potential compliance liability for the plan.

If you’re interested in learning more about how Plan Notice can accept responsibility for this process and ensure your plan’s complete compliance, please reach out to set up a conversation with our team. 

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