Pension Check not cashed over 30 years ago

[alexa]

I received in the mail a check dated in 1984 for $235 from I presume a plan participant who stated he never cashed it. It is a former pension plan trustee we had way back when

He wants us to reissue

Are there any rules out there on this?

[Andy the Actuary]

Never use a check as a bookmark!

If you can verify you had such a plan and participant, reissuing the check will cost less than asking legal counsel what you should do.

[alexa]

I don't have this person in our data as a current retiree

I only have a first initial of first name and no social security # so unable to determine whether a plan participant or not

We have 5 pension plans so not sure which one we would cut a check from

[Andy the Actuary]

When all else fails, ask the recipient for the missing information. No doubt you can figure out some way to make this go away quietly. The more you ask questions, the deeper the hole gets.

[GBurns]

I am concerned that the check has an initial instead of a full first name and that it does not have any reference information, such as Plan or Account #. I cannot imagine that there is no traceable info either on the check or in your records.

[Andy the Actuary]

Or by asking the check's payee . . .

By the way, you've already exceeded $235 in consulting fees!!!

[alexa]

I don't want any DOL/IRS penalties;)

I just found out that the payee was deceased in June 1984 just before the 7/1/84 check was issued

I am getting confirmation from the son of the deceased who found the check (after 30 years in his father's stuff:))

[My 2 cents]

I don't want any DOL/IRS penalties;)

I just found out that the payee was deceased in June 1984 just before the 7/1/84 check was issued

I am getting confirmation from the son of the deceased who found the check (after 30 years in his father's stuff:))

Oh, now you have to worry about whether anything at all should have been paid, based on the terms of the plan, the participant's marital status, etc. If it was a defined benefit plan, the pension might have been forfeited had the participant died without a spouse (maybe even if there was a spouse, the check having been issued before the Retirement Equity Act became effective).

If you do reissue the check, would you make it out to the same payee and let them worry about how to cash it?

[AndyH]

I'm confused. Did the postal service take 31 years to return an undeliverable check? Or did the deceased become a walker?

[My 2 cents]

I'm confused. Did the postal service take 31 years to return an undeliverable check? Or did the deceased become a walker?

According to earlier posts, the check was delivered 30 years ago but the participant had died. The check was just rediscovered by the participant's son.

[alexa]

No spouse at time of death per son

Participant died at age 78 ; I am bringing file back from archive (hopefully we have- another instance of someone gone for 20+ years yielded a destroy archive file since > 20 years:)

Current policy is to keep pension records for 50 years:)