Do I need to verify every retirement plan notice I send, or is once a year acceptable?

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Verify every required notice.

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Every notice you send to a participant has important information regarding how the plan is functioning or changes that could affect the participant in the future. Therefore, as the plan sponsor, you’re expected to distribute these notices at the time they are required. In addition, any notice that provides information regarding the participant’s asset is a notice that should be verified.

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In early 2021, the Department of Labor (DOL) released best practices regarding participant communication and how to address missing participants. These guidelines intend to ensure that all participants receive critical information that could affect their retirement assets. If participants are considered lost (they’re not receiving these notices), DOL procedures define that the plan should locate them and confirm they received all required information regarding the plan.

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These best practices confirm that any required notice is relevant, and therefore the plan sponsor should assume every notice must be distributed according to the plan’s policy. All participants should verify receipt of each notice, or they will be the subject of a location search to ensure they aren’t “missing.”

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If you’re interested in outsourcing the responsibility of distribution and verification notices, contact us. Plan Notice guarantees compliance associated with participant communication. In addition, when you engage our services, we indemnify the plan sponsor against any costs or fines resulting from improper notification.

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