Terminated Plan

[Guest stevena1]

This is hopeful, wishful thinking but I am going to ask anyway.

Plan terminates and decides to use benepay to pay everyone out. Money moves from John Hancock to Benepay.

Are the plan assets officially distributed now? Once it is in BenePays hands and they pay people out, are they still considered plan assets until they are distributed?

*holding breath, praying for answer I know I wont get*

[J Simmons]

While in BenePay's hands, the assets are not 'distributed' but remain part of the plan. In BenePay's hands, the plan assets are in the hands of a custodial agent of the plan trustee which chose to use BenePay, not an agent of the participants/beneficiaries.

Exhale.

[Guest stevena1]

darn. how did I know that was going to be the answer.

[John Feldt ERPA CPC QPA]

We also do not prefer the manner in which Hancock (Manulife) handles plan terminations (rather inconveniently). It sure would be nice if they could offer payout services for a fee at a minimum, but so far we've only seen one option: one large check for all plan assets written to the trustees fbo the plan.