Language for investment option changes

[Guest Brad Brewer]

We are revamping our daily 401(k) plan are changing the investment options. We are mapping each existing option to a new option. After the conversion, participants can use the VRU to make election changes.

Any samples which have been useful would be appreciated.

[Guest halka]

There are numerous aspects to your question -- e.g. 1. Are you merely replacing "Small Cap Equity Fund A" with "Small Cap Equity Fund B" or are you expanding investment options by, say, adding an international fund for the first time. If the latter, you might want stepped-up education for participants. If the former, simple notification of the change and delivery of new prospectus should work. 2. If time permits, we would put advance notification on are participant statement and on use other employee communication/education but if you are just doing an "apples to apples" fund change, I think it is more an issue of employee PR/information than regulatory disclosure.