SH Notice Delivery

[austin3515]

What is meant by "provide the notice." For example, would posting the notice in a central location satisfy the notice requirement?

[Tom Poje]

I'd hold that Q-A 7 of notice 2000-3 implies NO.

in this Q-A it is discussed if e-mail could be used, conclusion was that they are still looking into it, but as long as 'each employee "instead of receiving a notice on a written document", that employee receive notice through electronic media, bleh, bleh, bleh...'

but then maybe I am reading more into the statement about 'receiving' rather than simply 'posting' a notice somewhere.

[ERISA1]

I would agree with Tom. IRS Notice 98-52 says that notice must be "given to each participant". We've always understood that to require delivery; not merely posting.

By the way, I'm facing a doozy of a safe harbor notice question. I've made a posting under the Correction of Plan Defects part of the discussion boards. It involves the failure to give notice in a plan that may be "hard wired" for safe harbor. I'd really appreciate any feedback.

[Brian Gallagher]

I would suggest the same method of delivery as the SPD and SMM's.

[Bird]

We instruct our plan sponsors to distribute to each participant; that is, not just post it. We do not require any proof of delivery.

We had an audit of a SH plan earlier this year and they barely looked at the notice. Have another one coming up next month and will report any new info.