Trust outstanding checks

[Guest Nautical]

I have only been doing retirement benefit administration for about three years now. The company I work for continues to have problems with participants not cashing their monthly annuity pension checks. We are left wondering if they are deceased, lost the check, etc. It takes a great deal of time to locate each participant (if they are alive) and find out why they are not cashing their check/s? Can we legally stop their pension checks until they contact us? Many of our pension participant refuse to use electronic funds transfers (direct deposit). Any suggestions are welcomed....

[mbozek]

IRS regulations and rulings require that vested benefits be paid to participants except where the benefits can be suspended because of a return to service. The only thing you can do is offer a cash bonus or incentive to participants to sign up for direct deposit- which they already use for their SS benfits.