It is commonly mistaken that it is the employee’s responsibility to request documentation and enrollment information when he/she is interested in joining and contributing to the plan.
In actuality, it is the plan administrator’s responsibility to notify the employee in advance of reaching his/her eligibility date and providing all necessary notices, disclosures and enrollment kits. Failure to enroll a participant or properly apply his/her election on a timely basis can be costly. PACE will maintain records tracking all eligibility, enrollment/elections and beneficiary designations.
Failure to enroll an eligible participant requires a contribution to be made equal to 50% of the average deferral rate by all other participants, the full potential matching contribution and calculated lost earnings.
Participant Eligibility Services
- Track eligibility
- Send eligible employees the necessary enrollment materials
- Maintain copies of all election forms
- Maintain copies of all beneficiary designation forms