Pensions2020 Posted November 21, 2022 Posted November 21, 2022 We have been attempting to terminate a Plan for about a year that is with Ascensus. We have a handful of terminated employees and a deceased participant. The deceased participant's spouse does not want the funds and refuses to sign paperwork (they were estranged for many years). We would like to force them out to an IRA and finally close this Plan. However Ascensus refuses to let this happen. They say that Plan cannot terminate until beneficiary signs forms. No one else can be forced out as they want checks to be cut at same time. I have countered that they are excercising control over Plan Assets and acting as a fiduciary but they claim that in the termination paperwork they require you to sign, the Plan Sponsor requests no one gets paid out unless they sign a form. I don't know how many years Ascensus expects them to continue the Plan for this beneficiary. Does anyone have this experience or ideas?
Lou S. Posted November 21, 2022 Posted November 21, 2022 It seem like the Plan Sponsor and Trustee can cash the participants out under the terms of the document. Send Ascensus the relevant section(s) from the Plan Document and ask to escalate it to a manager. Luke Bailey and hr for me 2
C. B. Zeller Posted November 22, 2022 Posted November 22, 2022 If you search these boards for the term "recalcitrant" you will find other discussions which may prove helpful. Pensions2020 and Luke Bailey 2 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
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