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Master and Prototype Plan Document Providers - Responsibilities and Tips - Tip #8

8. Communicate with the adopting employers


Potential Concerns

Communicate with the adopting employers

  • If adopting employer misunderstands plan rules or doesn’t have contact with M&P sponsor:
    • annual Form 5500 series return may not get filed
    • allocations may not get made
    • interim and discretionary amendments may not be executed timely
    • funding deficiencies may occur
    • administrative procedures prior to distributions may not be followed

Adopting employers overwhelmingly rely on their M&P sponsors to administer their plans, keep their plans updated, file their annual reports (Form 5500 series return) and communicate with their employees. 

Increased M&P sponsor visibility and communications with adopting employers can promote a congenial working relationship and will foster plan compliance. The adopting employers’ failure to keep you informed about their business and plan operations can lead to noncompliance. This is especially true if the employer is struggling financially and you don’t find out about those problems until after the fact. Check with your adopting employers regularly so you can help to prevent problems or correct them as early as possible using the Employee Plans Compliance Resolution System.

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Page Last Reviewed or Updated: 18-Aug-2016