Pilgrim Baxter Funds- Return of Capital

[Guest Rachelw]

I am the TPA on a plan that received a settlement check from Pilgrim Baxter. I have gone on the Pilgrim Baxter Fair Funds Settlement website and the DOL page regarding this settlement. I cannot find one specific allocation method posted on either of these sites. The PBA site says, if info is available to allocate based on account balances at the time (98-2001). The fund company where the settlement came from claims to have no records of which particpants elected these funds at the time, and the company has no info either.

If I have no records of which employees elected these funds at the time, what is the best way to allocate? I was thinking to just allocate pro rata based on the ending balances as of last plan year end.

Has anyone run into this before? Or does anyone have any advice/information?

Thanks.

[Sully]

If I have no records of which employees elected these funds at the time, what is the best way to allocate? I was thinking to just allocate pro rata based on the ending balances as of last plan year end.

I think that may be a reasonable approach based on the guidance I have seen.

I had a similar case recently with Liberty Funds. Fortunately, I was able to dig up data on who was affected and allocate accordingly.

If you have not done so already, you may want to take a look at Field Assistance Bulletin No. 2006-01

http://www.dol.gov/ebsa/regs/fab_2006-1.html The information under 'Plan Fiduciary - Allocation among participants and beneficiaries' should be most useful.