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Posted

We recently moved our plan to a new RK. There was one beneficiary of a former employee who was missed from the blackout mailing. Can we send a copy of the original blackout notice that was sent?  The plan just went live with the new RK last week. 

Posted

Basically, the plan administrator must make a good-faith effort to send out blackout notices unless circumstances are such that they are beyond the control of the plan administrator.  It sounds in this case that all but one participant received the notice.  See DOL 2520.101-3(b)(2)(iii) says "In any case in which paragraph (b)(2)(ii) of this section applies, the administrator shall furnish the [blackout] notice described in paragraph (a) of this section to all affected participants and beneficiaries as soon as reasonably possible under the circumstances, unless such notice in advance of the termination of the blackout period is impracticable."

The current penalty for a failure to provide a blackout notice is $164 per person per day and to my knowledge there are no published correction procedures.

It doesn't sound like the beneficiary was prevented from taking an action during the blackout period, and if so, there was no harm to the beneficiary.  It does sound like there were reasons the beneficiary was not included.  I suggest documenting those reasons.  If you are very concerned about the situation, then send the beneficiary an informational copy of the blackout notice along with an explanation of what happened and that it no longer is applicable.

I can't speak for the DOL, but I have not heard of any situation like this where a plan was penalized for not sending a blackout notice to one participant.

 

Posted

Thank you for the responses. 
 

The prior RK provided a list of people with a balance, but this person was missed. Complete oversight when the mailing list was created.  

Posted

The plan’s administrator might consider whether the beneficiary might have practical notice that the blackout period ended if the beneficiary received, perhaps in a mailing sent to participants and other individuals who can direct investments or request a distribution, information about ways to communicate with the successor recordkeeper and the individual’s preliminary identity credentials.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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