austin3515
Mar 17 2005, 01:42 PM
I saw an article once discussing giveaways to encourae enrollemnt. Is it allowed, etc.? I recall the answer is yes, but if someone knows where I read this that would be awesome! I think it came out in the benefitslink daily email.
Benmark
Mar 17 2005, 05:31 PM
I remember checking with our ERISA counsel on whether we could give a prize (or have a drawing for a prize) to give to employees who sign up for the 401(k) Plan. The answer I got at that time (2002) was that you could NOT give a prize, gift, or selectively include someone in on a drawing for a grand prize that is conditioned on their enrollment.
Having said that, if you are having enrollment meetings, you can certainly offer a prize or have a drawing for anyone in attendance. You just can't condition the prize award on their actual enrollment into the plan.
Hope that helps.
austin3515
Mar 17 2005, 11:07 PM
That's where it was! Thanks! I remember the camera from Circuit City...