There are a series of notices regarding retirement plans that must be provided to participants as the end of 2011 approaches. Included in these notices are the following:
1)If a plan sponsor makes “safe harbor” 401(k) contributions, the plan sponsor must provide the participants with a safe harbor notice at least 30 (but not more than 90) days prior to the beginning of the plan year.
2) If a plan includes “automatic enrollment”, a participant must receive a notice of the automatic enrollment before the participant is initially enrolled in the plan and again on an annual basis. The notice should explain that, in the absence of an affirmative election, the plan will make automatic deferrals on behalf of the participant into specified investments. It should also contain all other pertinent information regarding the right to stop or change deferrals and investments. The annual notice must be provided at least 30 days before the beginning of the plan year.
3) If a plan includes participant-directed investments, the plan sponsor may have selected a “qualified default investment alternative” (QDIA) in which a participant’s accounts will be invested if the participant fails to make an investment election. A participant whose accounts have been defaulted in to the QDIA must receive an annual notice regarding the QDIA and the opportunity to make other investment elections at least 30 days before the beginning of the plan year.
4) A plan sponsor of a defined benefit plan must provide an annual funding notice to the participants in the pension plan. The notice generally must be provided within 120 days after the end of the plan year, but a later due date applies to small plans (less than 100 participants).
