mapping notice & 404c protection

[WCC]

Here is the scenario:

The plan sponsor would like to remove a fund from the plan line up due to poor performance (the advisor has suggested this). This fund holds no assets. We would like to remove it immediately without providing a mapping notice. The vendor will not remove the fund without waiting 30 days.

My understanding is that the notice is only required to obtain 404c protection. In this case, I don't care about 404c since there is no money in the fund being removed. I have told the vendor this and they say a notice is required (period) and they will not do anything until we provide a mapping notice.

Am I wrong in thinking that a notice is not a requirement? Any reason to provide a mapping notice in this scenario?

Thank you

[QDROphile]

There is no such thing as a mapping notice. Maybe someone is thinking about a blackout notice? The bigger issue is that the vendor should do as told by the responsible fiduciary -- after being thanked for its concern and advice.

[Peter Gulia]

WCC, you might suggest that the plan's administrator read carefully its service agreement with its recordkeeper. Some of these agreements specify some details about obligations and conditions for a change in plan investment alternatives.

Along with this, consider the possibility that the service provider's desire for a wait is not necessarily related to a notice that the plan's administrator might or might not send, but rather might relate to the recordkeeper's business operations. Some recordkeepers schedule the touches to the computer systems.

Also, understand that some service-agreement provisions might be negotiable (if a plan is big enough, or otherwise a valued customer - including because of a relationship with a lawyer or consultant).