Plan money has been escheated?

[jkharvey]

401k plan moved the assets from investment company A to investment company B. After the xfer the plan earned a small amount of additional interest or something in Company A. Company A did not xfer the money to investment company B. I'm guessing (don't know for fact) that Company A contacted the plan sponsor about the money and the sponsor either didn't get the notices or ignored them. Anyhow, now we are doing the valuation and are trying to find this money. The client isn't very helpful w/ this but so far can only tell us that company A sent the money to the state. I was wondering if anyone had any experience w/ this. Can Trust money be escheated? Would it go to the state where the Trust is located or where Company A is located? If there were segregated accounts, would they have escheated in the name of participants? I'm mostly concerned about our responsibility as the TPA. I just want to tell the client somehow that they have a responsibility and liability here as the fiduciary and that they need to track down this money.

[david rigby]

Really?

Is Inv. Co. A really that incompetent, to fail a simple follow-up transfer of trailing earnings?

Or are other facts not yet in evidence?

[jkharvey]

I personally think that there are facts the client hasn't quite told us yet, but one never knows. I also can not believe the investment company would do this.

[Guest mjb]

money/assets that are escheated to a state can always be recovered by the owner because the state acts as ths agent for the owner until its claimed. The plan should check the website for abandoned property in the state where the owner does business or the trust is sited to find out how to claim it.