Sending Notices by Mail
Everything you Need to Know
Today we want to talk about how to ensure compliance when sending retirement plan notices by mail. Everything you need to know.
A common misconception among plan sponsors is that if they don't receive returned mail from the USPS, it implies that their notices were mailed correctly and received as intended. They may also incorrectly assume that their only task regarding "missing participants" is to locate those whose mail has been returned.
While addressing "returned to sender" mail is an essential part of the process, it is not the sole best practice for ensuring compliance in your notifications.
The USPS only provides "return to sender" services under two circumstances: When the mail is addressed to a location recorded in the national change-of-address database as undeliverable. Or when the address is no longer a physical address.
It's crucial to understand that the national change-of-address database only retains information for a limited period. Once this period expires, the USPS will no longer return the mail to the sender but will deliver it to the address stated on the letter.
Consider this scenario. My mother-in-law moved from Texas to New Orleans and made a change-of-address request. Initially, her mail was correctly forwarded. However, after 90 days, correspondence unaware of her move was sent to her old Texas address, where it was dealt with by the new resident. While this may be acceptable for junk mail, can you envision something you wouldn't want a stranger receiving on your behalf?
Given that many plans send notices annually or during major changes, it's likely that required notices will be sent outside the national change-of-address timeframe, leading to delivery to the old address. In this case, someone other than the intended participant will receive the notice.
If a plan sponsor locates missing participants solely based on returned mail, many participants who have changed their addresses won't receive their required notices. This oversight could potentially pose a compliance risk for the plan.
To learn more about how Plan Notice can take responsibility for this process and guarantee your plan's complete compliance, contact us today. Have a great day!
