Plans converting to PlanPremier®-TPA may utilize the beneficiary tracking feature to maintain beneficiary information for each participant. This feature can also identify participants with no designated beneficiary so that appropriate follow-up measures can be taken. In addition, either participant or beneficiary address data can be utilized for plan mailings.
The implementation coordinator will discuss beneficiary tracking with the plan sponsor during the introductory call and explain details such as when and how to capture beneficiary information. The sponsor can decide if this feature is appropriate for their plan.
If the sponsor elects for American Funds to track beneficiaries, there are two options for capturing the information:
1 Plan participants update their own beneficiaries: with this method, participants make their designations directly on the plan participant website after conversion is complete. This option minimizes administrative responsibilities for the sponsor, but may require several follow-up communications to obtain all participant elections.
2 Plan sponsor updates beneficiaries for all participants: with this method, plan sponsors provide participants with beneficiary designation forms. Once completed, participants submit forms to the sponsor, who then consolidates the information into an Excel file to upload to Capital Group.
Plan sponsors who decide not to utilize beneficiary tracking may request participant beneficiary forms from Capital Group. These forms should be completed by participants and kept on file by the plan sponsor.