8955 SSA may be entitled to a benefit

[WCC]

Hello,

After much searching I need to ask for some help. An employee terminated 20+ years ago. He recently receives a letter from the SSA stating he may have a benefit due under the plan. There are no records dating back 20 year ago from the sponsor or the recordkeeper. The sponsor has no proof he was paid and cannot find any. The sponsor thinks this person was paid out but they just forgot to list him as a code D the following year.

Is there any IRS guidance that says who is responsible for proving the benefit still exists? The sponsor wants to take the stance that the "participant" should prove it. The "participant takes the stance that the employer should prove it.

Any thoughts or references (if there are any) would be appreciated.

Thank you.

[BG5150]

I think the onus is on the plan sponsor.

As an individual, how could you go about proving you DIDN'T get paid?

[WCC]

I agree with you that the reponsiblity belongs to the sponsor. My problem is the sponsor does not want my "I think, I believe..." answer. I have been trying to find something from the IRS that states the sponsor is repsonsible to prove that he was paid out.

Thanks for the fast response. Anyone know of any IRS guidance that would confirm this?

[Lou S.]

Plan Administartor's responsibilty for maintaining all records to establish benefit payment eligibility. If the Sponsor couldn't be bothered to maintain good records I have little sympathy for them.

I will note though that coding someone D is no guarantee they will be removed from the SSA lists. We have had several participants who were properly reported with the D code still recieve the SSA letter.

[masteff]

We've had prior discussion on the topic although it's a bit hard to find since the forum search feature doesn't like 3-letter words like "SSA"

http://benefitslink.com/boards/index.php?/topic/51349-inaccurate-notice-of-benefit-from-ssa/

[WCC]

Lou - thanks for the answer. It led me to Chapter 6 of "What you should know about your retirement plan" publication by the DOL. This is pretty clear.

Masteff - thanks for the discussion link. The SPD provides the info I needed on the claims procedure.

Thanks for all your help and fast responses.