An RSI news release said plan sponsors and their advisers will be able to outsource the processing of terminated participants, including communications, education, and guidance for participants making rollover decisions.
Through RSI, terminated participants with low account balances ($5,000 or less, depending on the plan provisions) who do not request a cash distribution or a direct rollover distribution can be automatically rolled into a default IRA account chosen by the plan sponsor, the announcement said.
“Plan sponsors and their advisers are increasingly recognizing that a rising number of low-balance and terminated accounts, created by the mobility of the workforce and exacerbated by the growing popularity of automatic enrollment, are creating costly inefficiencies and time-consuming administrative headaches,” said Spencer Williams, CEO of RolloverSystems, in the announcement. .
For more information, visit www.RolloverSystems.com .