Missing Participant

[12AX7]

I "inherited" a terminated DB plan and we can't find the last participant to payout. Lump Sum value is about $11,000. According to the instructions for Schedule MP, only a plan subject to Title IV can use the program. Is there something equivalent for a non-Title IV plan? Thanks.

[Effen]

Do a search of the board and you will find lots of creative solutions. I'm sorry to say there is no perfect answer.

Have they really made an effort to find the person? Have they used a search firm to try and find them?

[Dougsbpc]

There is a service that will allow an automatic rollover of a participant that cannot be found. Generally, they will not accept a benefit over $5,000 unless the plan is terminated.

They then hold the benefit and periodically attempt to locate the participant. I believe their fees can be paid either by the employer or from the participant's benefit.

[12AX7]

I used a professional location service and got an address, but no phone number. The letters we send go unanswered. Would it be reasonable to purchase an annuity for the participant under these circumstances?

[Andy the Actuary]

Social Security Administration provides a location service:

http://www.socialsecurity.gov/foia/html/ltrfwding.htm

You may also wish to check to see if the participant is diseased. Here's one reference tool:

http://ssdi.rootsweb.com/

[david rigby]

Reminder: If you determine that the participant is deceased, don't forget about the QPSA, and any other death benefit the plan may contain.