Modernize Notice Distribution

New Methods for Participant Engagement

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Today we'll be talking about modernizing your notice distribution and new methods for participant engagement.

As plan sponsors, you've likely noticed the Department of Labor's new guidelines for notice-sending in your retirement plans. Despite the shift, many 401k administrators still rely on outdated practices, potentially leading to compliance issues.

Historically, printed notices mailed to participant addresses or sent through company emails were the norms. But these methods are now less effective, primarily due to incorrect census data and complex electronic delivery rules. Participants moving without updating addresses or changing email accounts can lead to undelivered notices.

To avoid penalties during audits and ensure all participants are informed, the Department of Labor encourages proof of notice distribution, verified census data, and evidence of receipt. Regular interaction with participants also helps verify the correct receipt of information.

For more information on how to keep your plan compliant, contact us today.

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