Do any rules govern proper communication with active employees?
Yep.
While the Department of Labor's (DOL) 2021 best practices focus on preventing missing participants, these guidelines don't delineate between active employees and ex-employees. In reviewing the best practices plan, sponsors need to focus on communication and required distributions to all participants with a balance and any eligible employees, whether they are participating. Therefore, active employees are the biggest group of participants with whom you must adequately communicate.
Plan sponsors must communicate and confirm that they distributed the required plan notices to these active employees. After all, active employees are at risk of becoming missing participants also. In addition, many current employees change physical addresses, email addresses, and phone numbers during their employment. When they change their contact information, they may not consider how it could affect communication with their employer, and they often don't notify human resources or payroll of the changes. Without updated contact information, these employees may not receive important information from the company, including retirement plan notices.
The Department of Labor best practices expect plan sponsors to verify census accuracy, which includes active employees as much as ex-employees. Therefore, plan sponsors should implement a process requiring confirmation of all engaged employees' census information. If the employee doesn't actively confirm their contact information, the company should reach out and request verification of the census data on file. This process doesn't only benefit the employer regarding retirement plans; it also supports human resources in case they're required to contact employees for other benefits, emergency preparedness, or general employer information.
Contact us for information on how Plan Notice can support communication and verification for both active and ex-employees. We distribute and verify communication to all plan participants. Additionally, we conduct contact information verification with all employees to ensure that the plan and the company maintain updated census data on both active and ex-employees who participate in the retirement plan.
Yep.
While the Department of Labor's (DOL) 2021 best practices focus on preventing missing participants, these guidelines don't delineate between active employees and ex-employees. In reviewing the best practices plan, sponsors need to focus on communication and required distributions to all participants with a balance and any eligible employees, whether they are participating. Therefore, active employees are the biggest group of participants with whom you must adequately communicate.
Plan sponsors must communicate and confirm that they distributed the required plan notices to these active employees. After all, active employees are at risk of becoming missing participants also. In addition, many current employees change physical addresses, email addresses, and phone numbers during their employment. When they change their contact information, they may not consider how it could affect communication with their employer, and they often don't notify human resources or payroll of the changes. Without updated contact information, these employees may not receive important information from the company, including retirement plan notices.
The Department of Labor best practices expect plan sponsors to verify census accuracy, which includes active employees as much as ex-employees. Therefore, plan sponsors should implement a process requiring confirmation of all engaged employees' census information. If the employee doesn't actively confirm their contact information, the company should reach out and request verification of the census data on file. This process doesn't only benefit the employer regarding retirement plans; it also supports human resources in case they're required to contact employees for other benefits, emergency preparedness, or general employer information.
Contact us for information on how Plan Notice can support communication and verification for both active and ex-employees. We distribute and verify communication to all plan participants. Additionally, we conduct contact information verification with all employees to ensure that the plan and the company maintain updated census data on both active and ex-employees who participate in the retirement plan.
