Separated Participant Communications
Helping separated participants understand their distribution options so they can make important money decisions for their financial future.
Program details
What are the goals of this program?
Our goal for this communications program is to help separated participants understand the distribution options they have for the money in their Fidelity workplace retirement savings account with a former employer so they can make an informed decision about what to do with their savings. We hope these triggered email communications will provide robust and easy-to-understand educational resources that will truly help participants manage their money during important—and often emotional—life moments (e.g., experiencing a job change or retirement).
When will these communications be sent?
Changes to a participant's status code will automatically trigger these communications.
What messages will participants receive?
The program features a multiple-touch email communications stream (using participant-provided email addresses). Touch 1 is sent by email, with print backup for participants that haven’t provided a valid personal email address. All of the subsequent communications are email only. See the chart below for a breakout of the touches.
Touch 1 is a legally required communication that includes the 402(f) tax notice, a document that explains what a separated participant’s tax obligations are if they decide to move the money in their workplace retirement plan account from a former employer. Visit the “Retirement Plans” section of the IRS.gov website to learn more.
For plans that have adopted Auto Portability
Workers with a T status who are in an Auto Portability enabled plan and meet the Auto Portability eligibility criteria (vested pre-tax balance < $7,000) will receive an additional email on Day 1 to notify them of their potential eligibility for the Auto Portability service. They will continue to receive future communications containing relevant information regarding their eligibility, until/unless the participant opts out of Auto Portability, or if they rollover or cashout the money in their account on their own.
Visit this toolkit for Auto Portability education materials to share with your workers.
What is the call to action?
All instructions vary based on message, include a digital-first approach and link to support, education, and tools available on NetBenefits®. The primary call to action will direct participants to targeted content that helps them understand their distributions options. For example:
- If the plan has Auto Portability and the participant meets the Auto Portability account requirements (vested pre-tax balance < $7,000), they will be sent to a NetBenefits® article to learn about Auto Portability and their other distributions options.
- If the participant has ≥ $8,000, they will be sent to the NetBenefits® Distribution Options Guided Experience, a digital educational experience to help participants compare their options.
- If the participant has < $8,000 and is not eligible for Auto Portability, they will be sent to the respective default NetBenefits® article (links below) that talks about their 4 distribution options.
- Participants who make a “Stay in Plan” selection in the NetBenefits® Distribution Options Guided Experience will receive an email the day after, recognizing their decision, and no longer receive any additional separated participant communications for that account.
- Participants who visit the NetBenefits® Distribution Options Guided Experience and leave without making a selection will receive up to two additional “abandoner” email touches, bringing awareness to the benefits of using the online tool and the importance of making a selection. Newly separated participants (those within 30 days of separation) will receive the first touch. Tenured separated (those who have been separated 30 or more days) will receive up to 2 touches.
- Learn more about the NetBenefits® Distribution Options Guided Experience
A toll-free phone number for 1-to-1 support will be included for Advice-eligible plans as a secondary call to action. Education-only plans will not be directed to call.
Additional Resources
You can distribute these resources to further educate your workers about their distribution options.