At The Podium
Participants who skip town – and don’t take their money
In today’s mobile workplace, employees move from one place of employment to another with greater ease and more frequency than ever before. But what happens when an employee is due benefits from a company-sponsored retirement plan, but doesn’t take the (retirement) money and run? Or what happens when a retirement plan is terminated, but the plan administrator can’t track down all the participants who are owed a distribution?
While speaking at the 2019 Southeast Benefits Education Network’s Regional Employee Benefits Forum in Birmingham, AL, McAfee & Taft employee benefits attorney Brandon Long discusses the reasonable efforts plan fiduciaries must make in order to locate missing participants and beneficiaries, and why the U.S. Department of Labor is taking an aggressive stance on investigating plan sponsors that fail to do so.
Other topics include:
- Various factors leading to so many missing participants and beneficiaries
- DOL guidance for terminating plans
- Pension Benefit Guaranty Corporation program for terminating defined contribution plans
- IRS guidance regarding required minimum distributions (RMDs) for missing participants
- Responsibilities of plan recordkeepers
- Proposed new bipartisan legislation pending in Congress
- Best practices for plan sponsors