We have one "lost participant" with over $5k in a terminated plan subject to QJSA provisions. Does anyone know of an insurance company that will sell a deferred annuity for this lost participant. The insurance companies contacted so far require the participant's signature to set up the annuity. (Obviously if we could find the person we would not be in this situation to begin with).

I ran into something similar a few years ago. The participant was not lost, but the spouse refused to sign. We could not wait an indefinite time for one spouse to make up his mind, so we had to do something else. The amount was about $8000. We could not find any insurer willing to sell a deferred annuity, for any amount.

The resolution was to calculate an immediate benefit under the 50%J&S provisions of the plan (even though the plan had no "early commencement" at that age), and purchase an annuity on that basis.

For the question about lost participants, there have been several discussion threads on this topic. Try a search of the message boards.

Thanks Pax,

We've tried everything (IRS forwarding, internet, private services etc.) and can't locate this person.

Did your insurance company let you do this without a participant signature? If so, could you let me know the name of the insurer. Of course, in my situation, they would not even know where to send the checks for an immediate annuity.

No we did not do this without EE signature. In the case of a lost participant, this is probably not a viable course of action.

In doing search, have you considered the possibilty of death? leaving the country? doing a search for a relative?

Any other idears on who would sell a terminated plan subject to QJSA requirements a deferred annuity for a truly missing participant? How have other people dealt with this situation after all avenues of locating the participant have been exhausted?