Belgarath Posted February 18, 2019 Posted February 18, 2019 Question - under PPA (or anything else for that matter) must a distribution notice to a participant, for a DC Plan (non-QJSA) provide the dollar amount of the total account balance and the vested account balance? Now, this seems like a ridiculous question, I know, but in response to some fraudulent distribution requests, we are considering what possible options might be available to combat this. Among the questions/ideas floated was not putting these amounts on the distribution statement that is initially/automatically sent to the "participant," and somehow adjusting procedures to require the participants to contact the Plan Administrator/Trustee to obtain this specific information. Not saying whether this is good, bad, or indifferent, because we haven't yet begun to explore the ramifications - risk/reward, expense, quality/timeliness of service, what various platforms will/won't do/handle, etc. - only starting to determine if it is even possible. And not looking into any other changes (at this point anyway) so all other PPA requirements are NOT open to discussion right now. It appears to me that this information would be required for a DB plan - (accrued and vested benefit) but I'm not necessarily finding anything requiring it for DC plan. Of course, the statement must provide the verbiage re the effects of delaying distribution, QOSA if applicable, etc., but that's another matter. Anyone have any thoughts on this?
Bird Posted February 18, 2019 Posted February 18, 2019 Interesting question and I guess it probably made me wonder some time ago when we started using other companies' forms (e.g. platforms). We definitely put numbers on forms when we prepare them. They're not on there for most/all platforms. I don't think numbers are required, and if they are, well, we all have a lot of company and I'm not worrying about it. Ed Snyder
chc93 Posted February 19, 2019 Posted February 19, 2019 Belgarath, can you briefly explain "fraudulent distribution requests"? I'd like to know what that is and how it comes about. I don't think I've experienced this yet (hopefully)...
Belgarath Posted February 19, 2019 Author Posted February 19, 2019 Not trying to be a jerk, but I'm not going to describe it over the internet in any form, lest it be viewed/intercepted by people who would then say, "Hey, what a great idea - here's a way to illegally obtain funds."
chc93 Posted February 19, 2019 Posted February 19, 2019 Belgarath... thanks, no problem... I understand.
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