Ensuring Compliance with Plan Notices

Today we will discuss ensuring compliance with plan notices when working with a third-party administrator.

If you're in charge of your company's retirement plan, you bear a significant responsibility. You ensure everything runs according to the rules. This holds true even if you hire external teams to assist. Ultimately, if the Department of Labor or the IRS, or even a legal team wants a deeper look into your plan, you're the point of contact.

A crucial component of managing a retirement plan is the distribution of notices to all involved parties. Many third-party administrators offer assistance in this domain, but there are key considerations to bear in mind.

For instance, it's essential to determine the methods they use for dispatching these notices. Are they using both email and traditional USPS mail? Can they conclusively prove that the intended recipients received and acknowledged these notices? Furthermore, do they maintain detailed records of each notification attempt? And in scenarios where there might be discrepancies or errors, will they stand up and take responsibility, absorbing any associated costs or fines?

Understanding the capabilities and limitations of these third-party entities is paramount. Any responsibility they don't assume will automatically revert to you. Therefore, it's essential to have a clear understanding of roles and ensure they align with any contractual agreements.

For more information on how to ensure compliance with plan notices when working with a third-party administrator, contact us today.