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Showing results for tags 'Lost Participant'.
Found 4 results
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One of our clients is a large multi-employer profit sharing plan. Participants come and go all the time in this plan, but many times simply drop off the radar screen indefinitely. My questions are, Does the plan have to continue to attempt to deliver statements every quarter even though statements have come back as undeliverable for many many quarters? Is there some obligation to use a locator service to try and get a valid mailing address? This would be with respect to participants that are not subject to force out distributions.
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I have a few force outs to accomplish. Does the initial notice need to be sent by certified mail? Also, regarding lost participants, if we run their name through an internet search, is that enough due diligence? Finally, I have a lost participant with an account of approximately $6,000. We had done a few searches with no luck. What is done in this case? He has been lost for 12 years.
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My client has found several participants who were previously considered “lost”. Each of these participants is well past age 70 ½ and each has not taken an RMD. In accordance with the terms of the plan, some of these lost participants’ benefits were forfeited. My client has asked whether this defined benefit plan must pay these newly found participants a benefit that is actuarially adjusted for the period beyond age 70 ½. In some cases the initial benefit was around $100/mo and now with the actuarial adjustments, the benefit will be a lump sum of over $500,000 (the plan is terminating). In some situations the participant is dead, and the surviving spouse or beneficiaries will receive the benefit. In each case, the participant was searched for and determined “lost” when the participant reached age 70 ½. The client's actuary is suggesting that the benefit should only be adjusted to age 70 ½. Has anyone else encountered a similar situation? It is my understanding that the participant must receive 100% of the actuarially adjusted benefit to the current date (not age 70 ½). -
We have a plan that terminated with a lost participant. The assets for this participant reverted back to the plan sponsor. The participant was found three years later. The plan sponsor will pay them. We will probably outsource the distribution. Is there any necessary plan reporting?
