Adding/Removing and Updating Employee Information

If you have to add a new participant, update an existing participant, or notify us of termination, you do not need to take any separate actions.  As long as you are always sending us up-to-date information on your contribution submissions, any updates will be automatically processed along with the contributions. Here’s what you need to keep in mind:

  • Adding employees:
    • If you have a new employee, ensure they are on the file you upload to the tool on their first pay date.
  • Updating Employees:
    • If you need to change an employee’s demographic information, ensure the updated info is included in the file you upload.
  • Employee Termination:
    • If you need to notify us of an employee termination, ensure the employee is included in the file with the Date of Termination.  After that, you can remove them from your file, but we need to receive them with a Date of Termination at least once in order to process the termination.
  • Removing Employees:
    • Pursuant to ERISA, the federal law that governs tax-qualified retirement plans, all records relating to the Plan must be kept for six years following termination of the Plan. That records retention requirement includes all information about Plan participants, for example, including their service for the Plan Sponsor, benefits paid, or claims made pursuant to the Plan, distributions, and vesting. For this reason, our platform does not permit end users from deleting any records of Plan participants. Plan Sponsors should consider adjusting their own internal recordkeeping systems accordingly in order to comply with federal law.

If you have any questions please reach out to clientsuccess@vestwell.com.