Notice of right to repayment under the cash-out rule.

[Guest Thornton]

A plan uses the cash-out method of distribution. A partially vested employee is rehired prior to five breaks in service. What specific disclosure is required to be given the former participant upon rehire informing him or her of the right to repay the distributed balance? Thanks.

[Guest BJ]

I read an article several years ago indicating that participants who previously forfeited at cash-out and are rehired prior to 5 consecutive 1-year breaks should be given notice of the right to repay and have their account balance restored, but I cannot recall any of the details. It may be that the SPD is sufficient notification.