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If the participant does not know they have $ coming then the employer is probably not doing enough to educate the participants. The employer MUST have a forwarding address to furnish the W-2 at year end, so the problem of locating the former employee should not be that hard. Just get a forwarding address when they leave. Get friendly with the local consulate, and 'make it their problem' that their subjects are not getting their due.

I think Tom has hit on something you might want to look at and have a conversation with the client. If the plan does say to make the distributions "as soon as feasible or practical" you might be able to hold paying them anything until the last contribution is known. I realized people like to get their money fast and employers like to just get a clean break from a former employee. But rarely does the law require a plan to pay a person out in weeks or even a few months after termination. So only make one payment later when the correct amount is known. The way you explain the delay to people is that there is going to be an additional contribution so until we know your correct benefit we aren't going to pay you.

then the only thing I can think to watch out for is what the document says. I have seen some that say distribution occurs plan year following the year of termination (just to avoid having to pay someone 'twice') arguably 'as soon as feasible' falls under the same argument - if it creates a problem or issue with the asset house - e.g. if you are charged $50 for every distribution the participant is out an extra $50 because of a second distribution. (does that create fiduciary liability as well?)