uncashed pension checks

[Guest jigpsu100]

A company I represent has several pension checks that were sent to participants but remain uncashed. I'm not sure how to deal with these funds. After a certain period of time can they revert to the trust?

[SoCalActuary]

I recommend you conduct a search in the Distributions discussion forum.

Click the search icon, enter your key words, and the forum you want searched.

Good luck.

[mbozek]

The funds are plan assets until cashed. However, the employees were taxed in the year the benefits were distributed, even if the checks were not cashed.

[Guest TAG]

Remember,

A pattern of uncashed checks can also mean a deceased participant. New set of problems.

TAG

[Erik Read]

I've run into this in the past as well. More a head ache for the trust balancer trying to balance the book with outstanding checks, and making sure the sitting cash to cover them doesn't get invested...

Most banks will only honor a check for a maximum of 180 days after issue.

So, if they are older than that, I'd either issue a new check and mail it certified signature required - to see if they are indeed deceased, or - use the automatic rollover features now, to get the assets out of the plan trust and into an IRA.