Allocating Dividends in Daily Plans

[Guest wolfman]

There is a gap in time between the mutual fund's record date (ex date) and the date the cash hits the trust. Is there an industry standard or fiduciary standard that states the allocation to participants account should be based on shares held on the record date, or is it feasible to allocate on the shares held on the date the cash hits (assuming there is not an unreasonable amount of time between)? Thanks

[bzorc]

We always treated this as if the participant was a shareholder of the mutual fund. Therefore dividends were posted as of the record date. Saw a lot of occasions where a person had transferred or been paid out of a fund, and then had a small balance after a dividend posted. Good for the person, bad for the recordkeeper, who had clients who didn't understand why they had to pay for 2 checks for one person. Had one company actually study the mutual fund listings for their plan, to make sure dividends posted before they paid people out!