Nicholas Pension Consultants
ERISA Services, Inc.
Nova 401(k) Associates
The Retirement Plan Company (TRPC)/an ABG firm
Creative Pension Consultants, Inc.
Compensation Strategies Group, Ltd.
Atlantic Pension Services Inc
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|Interpleader Can Prevent Overpaying for Death Benefits|
HR Daily Advisor
Dec. 1, 2015
"If two or more parties are claiming to be the rightful beneficiary of a deceased participant's benefit, one option is to review all the facts and make a determination applying the plan's terms through its claims procedures. The risk of this approach is that if the administrator makes a decision that is overturned on review by a court, the plan could end up paying twice. A second option is for plan administrators to preemptively file an interpleader action. A plan can file an interpleader action as a plaintiff in a case, name the disputing beneficiaries as defendants, and then tender the benefit to the court and let the court resolve who is the rightful owner. A recent case illustrates how choosing between these forums can mean drastic differences in determining who receives the benefit." [Jenkins-Dyer v. Drayton, No. 2:13-CV-02489-JAR (D. Kan. Sept. 25, 2015)]
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