1 of our 15 fund choices is Brokerage link
Recently we have put a restriction on participant's entry into thsi fund option. We only only allowing them to ut 90% of their fund option to thsi;in other words 10% must be directed to other plan funds
We are updating our new hire kits and advising current folks invested 100% in brokerage link that voluntarily they can move 10% into other plan funds
Must we send a communication to all 401k participants that we are now restricting investing into brokerage link at 90% ?
Full Version: Brokerage link
Yes.
You should communicate such plan changes to all participants affected by the change. Basically, if there is any conceivable way this change would affect them, then they should be notified.
You should communicate such plan changes to all participants affected by the change. Basically, if there is any conceivable way this change would affect them, then they should be notified.
QUOTE (ERISAnut @ Oct 12 2008, 08:26 PM) 
Yes.
You should communicate such plan changes to all participants affected by the change. Basically, if there is any conceivable way this change would affect them, then they should be notified.
You should communicate such plan changes to all participants affected by the change. Basically, if there is any conceivable way this change would affect them, then they should be notified.
Anyone eligible in the plan would be impacted- myself included. i am invested currently 100% in a target fund yet at any time currently I can move 100% of my money to the brokerage link. With the change I will be limited to 90%. I guess at the time I do the money move I would be notified but I would think I should be notified prior to that time
QUOTE (alexa @ Oct 12 2008, 09:25 PM)
QUOTE (ERISAnut @ Oct 12 2008, 08:26 PM)
Yes.
You should communicate such plan changes to all participants affected by the change. Basically, if there is any conceivable way this change would affect them, then they should be notified.
You should communicate such plan changes to all participants affected by the change. Basically, if there is any conceivable way this change would affect them, then they should be notified.
Anyone eligible in the plan would be impacted- myself included. i am invested currently 100% in a target fund yet at any time currently I can move 100% of my money to the brokerage link. With the change I will be limited to 90%. I guess at the time I do the money move I would be notified but I would think I should be notified prior to that time
Yes. You should still be notified. As a participant, you are entitled to have accurate information for your vetting process. Just think, would it be fair to you to have a false impression of being able to invest 100% in an account where you are limited to 90%. Without getting too involved in the particular details stating, "so what, you will find out soon enough anyway" would set an improper precedent, even though the notion of an adverse impact may be debatable.
There really shouldn't be a reason to not communicate this to all plan participants when considering the potential ramifications for not doing so. It's more of a judgement call, but I wouldn't contemplate not notifying everyone.
"You should still be notified " as in being told prior to making a choice and preferably before the effective date of the change in options.
QUOTE (alexa @ Oct 12 2008, 04:34 PM)
1 of our 15 fund choices is Brokerage link
Recently we have put a restriction on participant's entry into thsi fund option. We only only allowing them to ut 90% of their fund option to thsi;in other words 10% must be directed to other plan funds
We are updating our new hire kits and advising current folks invested 100% in brokerage link that voluntarily they can move 10% into other plan funds
Must we send a communication to all 401k participants that we are now restricting investing into brokerage link at 90% ?
Recently we have put a restriction on participant's entry into thsi fund option. We only only allowing them to ut 90% of their fund option to thsi;in other words 10% must be directed to other plan funds
We are updating our new hire kits and advising current folks invested 100% in brokerage link that voluntarily they can move 10% into other plan funds
Must we send a communication to all 401k participants that we are now restricting investing into brokerage link at 90% ?
Under your plan, what will happen to those 100% invested in Brokerage link but do not want to voluntarily move 10% of their invested benefits?
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