Fiduciary Liability for a delay in a distribution

[Guest chris4013]

Are there any liability issues with the following scenario?

Carrier receives rollover distribution paperwork without their required letter of acceptant.

The letter of acceptance is from the new carrier which aknowledges the participant, what type of account the money will be rolled into, and aknowledges the eventual rollover.

Former Carrier does not notify participant of incomplete paperwork for over 3 months.

The participant is upset that the distribution took so long.

Plan Sponsor wants to know if he bears any fiduciary liability because of the delay. What can I tell him, or what codes can I show him?

[Harwood]

I doubt that there is anything in the Code or ERISA regarding this.

I think that generally courts rule that as long as the money was fully invested during the delay, the Participant has no case.

Check the plan document and the distribution form to see if any time limit was exceeded.