Any recommendations on ways to communicate a change in 401(k)recordkee

[Guest Susan Middaugh]

See above.

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Susan

[Guest klc]

I would be very honest and communicate to them the positives to the change. For you to be going through the great deal of work to convert your plan, you must feel there will be significant benefits to doing so.

Also, I would in general terms outline the conversion process. Your new recordkeeper should be putting together a very clear and detailed timeline for the conversion. Most likely this will include a blackout period, limited if any phone and internet access, and a delay in the next 1 or 2 cycles of participant statements.

Additionally I would be very concerns due the rapidly approaching Y2K issues. More than likely they will be looking for information before the end of the year. You will probably want to be sure you can provide it to them. Your new recordkeeper should have a plan in place to deal with these issues.

[Guest Anne V]

Susan, communication about the transition needs to be very specific -- particularly about those "temporary inconveniences." Among the issues you'll want to address:

> The last day for fund transfers, distributions or withdrawals,

> How long the black-out period will occur, and what happens to their funds during this period,

> The first day for "new" transfers, distributions and withdrawals with the new recordkeeper,

> Procedures for requesting the above with the new recordkeeper,

> Whether any fund options are changing between the old and new recordkeepers and -- if so -- whether they need to transfer monies from old to new funds.

Whether or not Y2K presents any specific problems for your transition, you'll want to ensure employees of the safety of their 401(k)investments during this transition.

I've worked with a number of clients on this kind of transition. Please feel free to e-mail me if I can help with any further questions.

Anne V.