procedure for plan when it recovers money lost in a ponzi scheme

[Gudgergirl]

Plan invested part of plan assets in what turned out to be a ponzi scheme. Plan Trustees recently recovered money from bankruptcy Trustee. What should plan trustee do vis a vis informing participants of recovered amount? what about particicipants who are no longer employees?

[ETA Consulting LLC]

A 'reasonable' approach would be to attempt to ascertain where (and when) the 'investment losses' occured to the plan. It may have been within a particular fund. Once done, attempt to identify the impacted participants. I cannot see where the current employment status of a participant would have any bearing (at least not initially).

Good Luck!

[QDROphile]

You might take a look at the Field Assistance Bulletin concerning demutualization proceeds for some applicable principles.