401k-employee address

NaeNae55 · July 2003

Last year we changed to a new 401k provider. We held meetings and sent out forms. Our prior carrier sent all paperwork here and I then distributed. The new carrier often deals with participants directly and I am seldom involved.

After one year, I still have 2 particpants (ex-employees) who have not completed the paperwork. Since they have made no fund elections, their funds sit in a low earning mutual fund. I have written repeatedly and tried other ways to contact these participants and get them to complete the requested paperwork. Since the new provider has nothing to go on, they send the statements for these participants to me. Every quarter, I send these statements on to the last known addresses (which I believe are still good) with additional pleas for some paperwork.

I am really frustrated, and tired of the extra work. Does anyone have a problem with me going onto the provider's website and entering their addresses myself and then sending these 2 a final letter telling them what I have done, that their statements will henceforth go directly to them, that I will no longer try to contact them, and that if they want to change their investment allocations, they will have to go directly to the provider? What do you guys think? Will I put my company at risk? Is this a no-no?

sandra_d · July 2003

It seems to me that if you are administering the plan, you have the right to update addresses, etc. I have updated addresses myself in the past, so I'll be curious to see whether anyone feels it is absolutely inappropriate.

Human Resources Manager · July 2003

I have been contacted by employees who have said that they contacted our 401(k) provider in order to change their address, correct a name misspelling, what have you, and they have been told that they would have to submit their changes to me, and I would have to submit the changes to the provider. I don't know if this is typical for everyone, but when an employee has a change, I just e-mail it to our contact at the provider and she takes care of updating the employees records.

NaeNae55 · July 2003

I do have the ability to make changes on the site. However, I am concerned that if I go in and set up their addresses without their specific authorization that there might be repercussions. For instance, the account their funds are sitting in now is an extremely low earnings account (but the safest the plan offers). The new provider put these funds here unless and until they were given investment instructions. Will the participants somehow be able to blame me for their low earnings if they can show that I was in the system and made changes? Especially without their permission?

If there is no danger of a liability here, then I will get the changes made and be done with it. But the laws are so tricky with fiduciary responsibilities that I am leary (according to our SPD, I am the plan administrator).

Please advise fellow forumites.

Anita · July 2003

If they are ex-employees are they still considered a participant? When one of our employees terms I fill out the term info. for the 401K which includes their name and address. Paperwork then is sent to them by the 40K company to either draw it out,or roll it over x:-)

NaeNae55 · July 2003

The law does not require employees to draw out their funds when they leave your company, though your specific plan might require it. The only employees we can force off are those who leave with a balance of less than $5,000.

I have decided to mail my letters. Thanks everyone for your input.

401k-employee address

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