PFD and QDIA Notices Being Mailed to 401(k) Plan Participants

Effective in 2014, NRECA will mail two required 401(k) Pension Plan disclosures together: the Participant Fees Annual Disclosure (PFD) notice and the Qualified Default Investment Alternative (QDIA) notice. Both notices must be sent annually to each participant or beneficiary who can direct investment of a 401(k) Plan account.

What will change
In 2013, the Department of Labor (DOL) gave plan sponsors a one-time window to reset the mail date of the annual PFD notice. NRECA is taking advantage of this window by combining the PFD and QDIA notices into a single mailing during the week of November 17, 2014 and each November thereafter. The content of each notice won’t change.

Combining these notices means that all 401(k) Plan participants will now receive related investment information at the same time. It also means lower postage costs and less administrative effort, which in turn helps keep the 401(k) Plan’s administrative costs low.

Other background information
The PFD notice requirement started in 2012, when the DOL began requiring plan sponsors to provide certain fee, risk, and investment information to 401(k) plan participants.

• Historically, the QDIA notice must be given to participants by November 30 each year. The QDIA notice describes where an account holder’s 401(k) Plan deferrals will be invested if NRECA hasn’t received specific investment instructions from that individual
• NRECA also includes the PFD and QDIA notices in 401(k) Plan enrollment kits. This will continue as required by DOL rules; only the mail date of the annual PFD notice will change

Questions? Contact your NRECA field representative or the Member Contact Center at 866.673.2299 or contactcenter@nreca.coop.