Enhancing Your Notices

Best Results when Communicating with Participants

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Today we want to talk about how plan sponsors can increase participant understanding and engagement of retirement benefits through upgraded notices.

Often, plan sponsors view retirement plan noticing as a necessary chore imposed by the Department of Labor. Typically, these notices are bland and overlooked, leaving participants uninformed about their retirement benefits. However, plan sponsors can leverage these noticing requirements as an opportunity to enhance participant engagement and understanding.

Consider revamping your notice. Adding intrigue to the notice's subject line can encourage recipients to open it. For example, replacing a dull "four-oh-one-k notice" with a lively "Exciting changes to our retirement plan!" can increase participant engagement.

A summarized cover letter explaining the notice's content and purpose can also enhance participant understanding. It could read something like: "The enclosed notice informs you of a modification to your retirement plan, involving a change in one of the investment options. We encourage you to review it carefully and manage your assets accordingly. For any questions or personalized assistance, please reach out to our support team."

More information leads to increased confidence in the company's benefits among participants. Therefore, it is worth putting in the extra effort when distributing notices. Instead of merely ticking a box, consider how the information can be made more accessible and understandable for the participants.

For more information on how to best engage with your participants when sending retirement plan notices, contact us today.

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