Annual Notices Requirements

Lightens administrative lift

How is SECURE 2.0 relevant to you?

Select one of the options below to learn more.

Plan sponsors are no longer required to provide multiple notices to unenrolled and nonparticipating employees.

SECURE 2.0 includes an optional provision that could significantly reduce the costs of printing and distributing multiple plan notices to all employees. Effective for plan years beginning after December 31, 2022, plan sponsors are no longer required to provide unenrolled participants with certain notices as previously required by the Employee Retirement Income Security Act of 1974 and the Department of Labor. Instead, participants who have not elected to participate and do not have a balance in the plan (unenrolled participants) can receive the following:

Summary plan description upon initial eligibility to participate in the plan
An annual reminder of eligibility and any applicable contribution deadlines
Any required document the participant may request at any time

Many plan sponsors know which employees should be classified as active or unenrolled. For those who have not classified employees as active or enrolled, now might be a good time to review employee census data. In general, classifying employees could be as simple as indicating which are:

Active: participants who are currently contributing or have an account balance in the plan
Unenrolled: employees who are eligible but not participating and do not have an account balance in the plan

Lastly, plan sponsors should communicate their new annual disclosure requirements to all employees so that unenrolled employees (in particular) are aware of the impact.

For more insights on plan management, please take a look SponsorFIT®, a digital tool that helps simplify plan administration so employers can stay focused on what really matters—their employees. This dynamic tool makes it easy for plan sponsors to:

Review their plan with a clear snapshot of key metrics
Gain real-time insights through advanced reporting
Manage participant and administrative requests directly online

Stay connected, as we wait for additional guidance from regulators on how to best navigate and implement this optional provision. In the meantime, don’t hesitate to reach out to your financial professional or Corebridge Financial relationship manager.

Nearly 20% of employees who have access to an employer-sponsored plan do not participate in the plan.

Eliminating unnecessary notices could mean a notable decrease in plan administrative costs and ultimately enhance the overall health of the plan.

_{Source: www.benefitspro.com/2022/10/05/why-17-of-employees-dont-participate-in-401k-plans}

_{This material is general in nature, was developed for educational use only, and is not intended to provide ﬁnancial, legal, ﬁduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your ﬁnancial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional.}

Corebridge Financial: Moving financial futures forward.

As these SECURE 2.0 provisions become effective, plan sponsors will have more flexibility in helping employees achieve personal and financial wellness. For more information about these and other SECURE 2.0 provisions, reach out to your Corebridge representative and visit our online hub. This new online resource breaks down and simplifies relevant provisions of SECURE 2.0. We will continue to update the hub with more relevant and timely content—so please visit often.

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