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Notice requirements for employers changing investments within funds
Old 08-09-2011, 02:15 PM   #1
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Notice requirements for employers changing investments within funds

DH has some funds held in a qualified defined contribution retirement plan, where he selects the funds that his money is placed.

Today, we recevied notice that one of the funds (our largest holding) was being replaced with a differnt fund, effective YESTERDAY, and of course if we wanted something different, then we should have done so by yesterday.-- um.. too late to find out after the fact!

Is there any minimum requirement notice on these type of things?
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Old 08-09-2011, 03:34 PM   #2
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Quote:
Is there any minimum requirement notice on these type of things?
Evidently not.

But then perhaps you got lucky and were out of the market for the big bad Monday selloff. Perhaps you came out ahead ?
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Old 08-09-2011, 03:48 PM   #3
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I've had more notice than that but more importantly we could hold onto the old fund(s), just could not purchase any more of it. Is that true in your case?

DD
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Old 08-09-2011, 04:04 PM   #4
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Originally Posted by DblDoc View Post
I've had more notice than that but more importantly we could hold onto the old fund(s), just could not purchase any more of it. Is that true in your case?

DD
Same here,
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Old 08-09-2011, 10:06 PM   #5
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Is there any minimum requirement notice on these type of things?
No.
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Old 10-30-2011, 11:29 PM   #6
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Generally, plan sponsors like to provide notice but there can be reasons it might not happen including: 1) The service provider has pulled the investment option off their platform with little or no notice to plan sponsors, 2) There is a serious problem with the provider and the plan sponsor felt it was important as a fiduciary to pull the option immediately, or 3) the plan sponsor changed service providers and was required to change certain investment options (typically they'd announce this in advance).

I work with our Company qualified plans and we generally announce we're taking options passive at a future date and then after a fairly long lead time eliminate them much later. However, we have had situations when an issue arose requiring immediate action, but that's pretty rare. And when it does happen we'll explain why it was done.

I'm guessing you were mapped to a nominally similar investment option or moved to the Plan's Qualified Default Investment Alternative or QDIA. You should be able to redirect your money to something you like better almost immediately.

Plan's vary widely in how they're administered and the level of employer involvement but I find it hard to believe any plan sponsor would do this absent some notice without a reason. You might want to call and ask why it happened.
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