Fund Change Notices and other heahaches

[52626]

Model allocations are vey common in our plans. Most of the time the funds within the models are different than the core options.

We are in the process of updating the models which means fund replacements and changes to the target allocations.

Is the plan sponsor required to provide a fund change notice 30 days prior to fund changes to the model.

Participant A elects the Moderate Model. The investment strategy does not change even though the funds that make up the model change, so I do not see why a notice must be provided.

If a notice is required, can it be sent elecotnronically and then mailed to those particiapnts without email addresses?

[Bill Presson]

If the model itself is a DIA (which I believe to be the case), then I'm pretty sure you would not have to provide a notice to change funds in the model lineup 30 days before the change. You might still want to provide information on the change and why, but I don't think there is a time frame.

I would liken it to the purchase sale of investments inside a mutual fund.