Do some participants prefer to be communicated with differently?

In general, yes.

Note: This entry has some stereotypical answers. We are aware that some individuals within different generations or age brackets may not fit this entry’s guidelines. However, the overall answer tends to be accurate.

Different retirement plan participants in your company may prefer various forms of communication. For instance, the Baby Boomer generation traditionally prefers physical mail, whereas Generations X and Y typically prefer electronic mail, and many millennials favor text messages. In addition, some employees prefer to receive communications via social media, but based on their age bracket, they may use different social media platforms. Awareness of these different preferred communication methods will enhance the plan’s overall communication and help them meet the Department of Labor’s (DOL) expectations regarding sending required notices to all participants.

Plans should consider developing a comprehensive strategy to communicate in all the preferred methods or at least to make the information accessible via all the different options. That way, they’ll reach a higher percentage of participants, which over time, will improve employee participation and satisfaction with the plan.

Additionally, providing different methods of notice distribution shows the plan’s diligence in reaching all participants with required notices. The DOL’s best practices, released in 2021, place the burden on the plan sponsor to both send the required notices and verify receipt of those notices. The idea is to prevent participants from missing important communications regarding their assets. By disseminating the information through multiple distribution outlets and documenting these attempts, the plan sponsor reduces the risk of improper communication to its participants and increases the likelihood that each participant will receive these notices.

For support in distributing notices via multiple communication sources, contact us at Plan Notice. Plan Notice provides your plan with a solution to distribute required notifications via email, SMS, and first-class mail. We also create a trackable and auditable log to prove receipt and review of these notices. If a participant doesn’t verify notice receipt, Plan Notice will locate the individual, per DOL best practices. This process ensures plan compliance regarding notice communication and processes related to missing participants. Plan Notice additionally indemnifies the plan and the plan sponsor, covering any costs associated with an audit or any potential fines related to participant communication or notice distribution.

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