Forfeitures in Daily Environment

[Guest Michelle]

How are TPA's handling plan forfeitures for daily plans that allow for immediate distributions?

We have just converted our daily plans from Trustmark to Quantech. In Trustmark, there was a Mr. Forfeiture in each plan with the social of 999-99-9999, however it was not a relational database so this was not a problem. After a distribution, we would transfer all nonvested $ to Mr. Forfeiture and allocate once a year.

We are debating over the following 2 options:

1. Leaving the forfeitures in the participants account until the end of the year. Does the fact that the participant still has voice response access and can make changes cause a problem ? And I believe we would need to do a transfer from the participant elections to a balanced strategy? Also, we are doing quarterly statements and we don't want terminated participants with nonvested balances to receive statements. In a big plan it would be a pain to have to manually take out the statements of terminated non-vested participants.

2. Setting up "fake" social security #s. I know this can cause a significant problem in Quantech. If we opted to do this, obviously each plan would have a unique social for Mr. Forfeiture and we would maintain a master list of any "fake" socials. As far as how to get the money from the participant to Mr. Forfeiture, could we just forfeit the terminated participant as if going into suspense and post a forfeiture to Mr. Forfeiture only ?

We are wondering how other TPA's who use Quantech are handling this. Any input would be helpful.

[Tom Poje]

I don't do daily vals, so I will avoid that part of the question.

regarding fake soc. sec numbers:

supposedly no one in the country has a soc sec # starting with 9.

therefore, I recomend using fake numbers such as

998- (where 98 indicates the current year)

12- (where this value indicates the month the dummy ee was created)

xxxx (whatever other number convention you decide)

this should prevent the rare chance of duplicating a number