Easing the Burden of Required Notices

October 5, 2021
A woman looking distressed at her desk

We're continuing our 5 Moments of Truth series, which highlights critical times when you can add value to your client relationships. This month, our topic is delivery of required notices.

  1. Annual census
  2. Compliance testing
  3. Form 5500 and audit
  4. Delivery of required notices
  5. Measurement and strategic planning
Annual Census
Compliance Testing
Form 5500 and Audit
Delivery of Required Notices
Measurement and Strategic Planning

Required Notices

Help Clients Avoid These Potential Fines*:

  • Up to $161 per day, to a maximum of $1,613, for failure to furnish information requested by the Department of Labor. Some examples are summary plan descriptions and summary of material modifications.
  • Up to $1,788 per day for each incident for failure to provide an automatic contribution notice.
  • Up to $143 per day for each participant for failure to provide a proper blackout notice on time.
  • Up to $110 per day per participant for failure to provide quarterly participant statements.
  • $31 per day per participant for failure to provide a benefit statement to terminated participants.

* Department of Labor, 2021

For many plan sponsors, delivering required participant notices can feel like a huge burden. It’s a time-consuming task, and they can face big penalties if notices are not sent on time or contain incorrect information.

How can you help lessen this burden on your clients while strengthening your business relationships? Connect them with a reliable partner who can take on the job of delivering required notices.

A provider like The Standard can take these tasks off their plates:

  • Documenting the process
  • Deciphering requirements and timing
  • Creating or modifying notice templates
  • Preparing for e-delivery or mailing
  • Printing and mailing notices, if applicable
  • Sending notices to current or former employees with a balance
  • Monitoring e-delivery opt-outs
  • Tracking and responding to undelivered notices

Help your clients delegate these required tasks. This can give them greater peace of mind and protection from liability. Meanwhile, your attention to easing their stress is a solid way to demonstrate your value.