Improving Participant Participation

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Today we will be discussing best practices for improving participant participation in retirement plans.

The retirement plan noticing process is more than just a task; it's a chance to enhance participants' understanding of the benefits provided by companies. While many plan sponsors just see it as a compliance step, there's an opportunity to truly engage with plan participants.

One significant challenge is that many notices go unread or unopened. Jazzing up the presentation can help make them stand out. Instead of a simple "401(k) notice", using a catchy subject line like, "Hey everybody, exciting changes to our retirement plan!" can increase the chances of the email being read.

Another way to engage participants is by summarizing the notice. Add a cover letter that briefly explains the notice's content. For instance: "The attached notice highlights a change to your retirement plan, specifically about one of the investment options. Make sure to look it over to ensure your assets are managed the way you want. 

In essence, always consider the participant's viewpoint when sending notices. The better informed participants are, the more confident they'll feel about the benefits offered.

If you would like more information on best practices around improving participant participation with retirement plans, contact us today.

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