Mergers/Acquisitions-what happens to the participants money under old

[Guest Karen Renee]

I have an employee who worked for a hospital from 1977 to 1982. She left her money and since then the hospital merged with another. They have a new plan now. She wants to take that money and roll it into our plan, but she can't find anyone who can give her information. She is getting major run-around. Any ideas of who can help her? Someone must be held accountable for the money. The employer, or the administrator? Any ideas would be helpful.

[MWeddell]

401(k) plans didn't exist in 1977. The employee probably contributed to a Section 403(B) contract, which often are called tax-deferred annuities. Most of those programs are administered directly between the annuity provider and the participant with the employer taking only a passive role. Thus, if the employee knows who the annuity provider was, she'd probably have better luck calling the provider directly rather than going through the old employer.

She won't be able to roll over 403(B) money (if my guess is right) into a new employer's 401(k) plan or any other type of qualified plan. She may be able to roll it into an IRA, but many annuity providers place substantial penalties on distributions prior to a specified age.

Good luck.

[Guest Robert Collins]

She may also wish to try the following:

1) write a formal letter to the HR Department of the employer who took over the plan and request information on how to take a distribuiton from the plan. If the plan was an ERISA plan the employer has to follow the plan's claim procedures.

2) Ask the employer to research the Schedule SSA (form 5500) for the merged plans to see if her name in on one of these schedules.

3) Contact the Social Security Administration to see if she is on the SSA records as a participant who had a vested balance when she separated from service.

4) Look over any records she had to determine what kind of plan she had: 403(B), profit sharing, defined benefit. If a 403(B) maybe she knows the name of the insurance company that was administering the plan and she then should contact the company.

5) Check with the state revenue deparment of the state where her old employer was located to see if there are any "lost funds" in her name.