The plan administrator of a plan established under this chapter may immediately transfer to the plan’s deferred compensation trust fund all deferred amounts and investment income from a vendor who at any time fails to satisfy the requirements of this chapter or the plan administrator. A vendor may not charge a fee or penalty as the result of a plan administrator’s transfer under this section. Immediately after making the transfer, the plan administrator shall give to each employee whose deferred amounts and investment income were transferred a notice that states that:
(1) the vendor’s investment products are ineligible to receive additional deferred amounts;
(2) the amounts have been transferred from the vendor to the deferred compensation trust fund; and
(3) the employee is required to promptly designate another qualified investment product to receive the transferred amount.