Participant cannot be reached to make a deferral election.

[Guest Jimmy B]

I have an interesting situation: a client has two employees that cannot be reached to find out if they would like to make elective deferrals. Both participants entered the plan 7/1/00. One is in the hospital and the other is in the military. Both are still receiving pay (I don't know how, maybe direct deposit, but the client says they cannot be reached). What must be done? Can it be assumed that they will not defer? If not, what legal steps must be taken to give them the option to defer? Please cite any sources I can use. Thanks.

[Kirk Maldonado]

What does the plan say?

[Guest Jimmy B]

I have looked the plan over pretty thoroughly and cannot find any guidance on this situation. Any other suggestions?

[Guest]

If the plan or other paperwork does not provide for automatic deferrals, you can't defer their money without their consent. But I would think you could amend the plan to make it retroactive that automatic deferrals will be made unless the plan knows otherwise.