Pension distributions - transfer of data

[waid10]

We currently handle pension distributions in house. We have encouraged participants to permit us to do direct deposit of their monthly pension checks, so that we don't have to mail them. We have now engaged a vendor that will handle the pension distributions. The vendor will need employee data to continue the distributions. This would include the direct deposit and other info (bank, bank acct number, name, address, social security number, etc.).

I am hesitant to just transfer this data. Is it enough to notify participants this data will be transferred to the vendor? Or do we need to have the participants complete new direct deposit forms sent by the vendor/administrator?

Please help!

[mbozek]

have you looked at at your agreement with the bank that is currently making the payments to see if the information can be transferred? Second have you retained counsel to determine what are the legal issues of transferring such info under state and fed banking/privacy laws?