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Recovery of portion of distribution?


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Posted

Employer was in the midst of doing an interim valuation of plan assets of a PSP and a MPPP. Participant requested distribution of his account balance 2/28/01. Broker moved the funds based on the anniversary date (9/30/00) balance of participant's account. Interim valuation recently completed and participant presumably would have received less. Does plan have a responsibility to look to participant for the difference?

Posted

I have always thought of it as a fiduciary issue. I think that the plan fiduciaries have a responsibility to go after the distributee to recover the excess distribution, even if that means a lawsuit (for large amounts).

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