no enrollment foms

[Jim Chad]

I received a note form John Hancock reminding me that one of my plans has 16 Participants who have never filled out enrollment forms. Obviously they are not deferring, they are just getting the non elective contributions.

They have not chosen investments so they are in the default investment. They have not chosen beneficiaries so the document will control that

Some of these people have been given enrollment packets several times and they never fill them out.

Is there any legal requirement for how often we need to remind them to enroll?

If no legal requirement, what do other firms do as a standard kind of practice?

[ERISAnut]

Jim,

This is purely a service issue. The legal function of the plan has been successful in dealing with those participants who simply do not respond. What Hancock (enjoyed him in the movie) is doing is simply notifying you that these are potential contacts for some financial advice or other services you offer (I am assuming you are a Financial Advisor). There are no legal issues.

There are tons of fiduciary issues that do not need to be addressed as the system that is working is doing exactly what it was designed to do; invest the funds for those who simply do not respond.

[Jim Chad]

Thanks for the reassurance ERISA nut.

I thought Hancock was great, too.