Do You Have a Communication Policy? You Should!
In my 25 years as a business owner and executive consultant, I’ve found that internal communication is the number one opportunity for improvement in most businesses. Ensuring the team knows the organization’s essential aspects, including the vision and mission, requires ownership and management’s continual efforts.
Corporate benefits, especially retirement plans, are a significant area where communication could be improved in many businesses. Many companies and their leadership believe communication with employees is the responsibility of retirement plan service providers (record-keepers, administrators, and advisors). Unfortunately, this is not the case. The plan administrator is responsible for ensuring that participants receive the required communication outlined by the Department of Labor and that education is distributed consistently to all employees.
To ensure that the plan executes proper communication, plan sponsors and plan committees should consider implementing a communication policy. A communication policy is similar to retirement plan administrative policies, like investment policy statements, annual filing procedures, and payroll contribution and reconciliation procedures. This policy should define the steps a plan believes are essential in communication and who is responsible for each role. A detailed policy also allows the plan to hold responsible individuals accountable for their duties.
In addition to accountability, the policy can define the proper procedures which should be followed. A few key aspects of these procedures are:
- The communication method - Use of different communication platforms, including email, US postal mail, text message, or other means.
- Tracking - How the plan will validate that the communication was sent to all participants, how the plan will confirm delivery to all participants, and finally, how the plan can verify receipt. Delivery confirms that the materials went to the expected location, whereas receipt confirms that the correct participant received them.
- Documentation - How the plan saves the proof of communication in case the participant or the Department of Labor questions whether the communication was distributed.
With a detailed communication policy and by executing the outlined procedures, plan sponsors can confirm that they meet their fiduciary communication responsibility and provide their employees with a high level of service and support. Improving engagement and meeting compliance go hand-in-hand and greatly benefit all parties.
For an example of a communication policy, reach out to us. When Plan Notice engages with a plan, we implement our communication policy and follow the responsibilities outlined, ensuring fiduciary compliance. Plan Notice’s solution guarantees proper communication distribution and verifies delivery and participant receipt of all such communications. In addition to supporting all your administrative communication requirements, Plan Notice indemnifies the plan sponsor and plan committee against any claims or costs regarding improper (or lack of) communication.
