Sending Multiple Notices in One Distribution

Today we wanted to talk about best practices when sending multiple retirement plan notices in one distribution.

The Department of Labor's best practices around participant communication emphasize that plan sponsors are responsible for sending and verifying all necessary plan notices. It hasn't been specifically stated if each notice should be sent individually or if combining them is acceptable. Historically, the Department of Labor has allowed plans some flexibility in devising cost-effective solutions. So, until further guidance is provided, merging multiple notices should be deemed reasonable.

However, even if notices are combined, it's essential for plan sponsors to follow compliant distribution procedures. This includes ensuring that all eligible and participating individuals receive the notices, validating that they've been received, and maintaining records as proof.

Importantly, to avoid confusion, it's crucial to educate recipients about what each combined notice entails. A brief summary of each notice in the combined package can greatly assist plan participants in grasping the full scope of the information presented. 

Additionally, if a plan's financial advisor holds meetings to delve deeper into the details and answer questions, participants are better informed.

For more information on best practices when sending multiple notices in one distribution, please don't hesitate to contact us today.