DC Plan Communications in the Age of COVID-19

Communicating with retirement plan participants is always important; and aside from law and regulation requiring it, such communications can serve participants well and help make a retirement plan more effective and meaningful. But doing so during a pandemic poses challenges and can require adjustments.

In “Working Through DC Plan Communications in a Pandemic,” Elizabeth Woodburn, Director of Engagement at Buck Global LLC, offers ideas on communicating with DC plan participants in times like these.

Woodburn notes that participants have questions about their retirement accounts and finances, and that some are contending with difficult financial circumstances that add to and exacerbate the effects of the pandemic. She argues that employees trust employers as a source of information, which makes it natural that employees will look to them for answers. She suggests that employers review three areas concerning DC plan communications in light of the current situation.

CARES Act and Other Relief Measures

Recently enacted laws providing relief from the financial effects of the pandemic, as well as the new regulations that implement and provide guidance about them, will require action by employers and plan administrators. Among these: updating notices that must be provided and plan documents and disclosures to participants, as well as documents and procedures related to loans and withdrawals from retirement accounts.

But aside from those changes required by law and regulation, Woodburn suggests keeping in mind that an employer is in a position to provide an objective viewpoint to participants and to communicate the potential benefits and disadvantages of actions participants may be considering, which can help them make informed decisions.

Targeted Messages

Woodburn suggests that it is important to keep in mind that it may be helpful to provide participants with special, targeted communications that will help address their particular needs. For instance, she observes, older and younger employees have unique concerns, as do those who have suffered financially due to the pandemic.

Financial Well-Being

Many people now suddenly face circumstances they did not anticipate, Woodburn notes, and could find resources and information that help them contend with those challenges very useful. Plan sponsors and administrators, she argues, are in a position to provide access to resources such as financial counseling and education.