Unless the participant makes an election to receive the amount in cash or elects a direct rollover, the balance will automatically be rolled into an individual retirement annuity/account (IRA) established on behalf of the participant by the plan, according to a MetLife news release.
According to the news release, features of the auto rollover program include:
- MetLife will coordinate the transfer of participant information and assets from the plan to Millennium Trust
- Millennium Trust will provide welcome kits to each participant and a client service group that will process and administer the IRA accounts
- The default investment will be a FDIC insured money market vehicle offering competitive yields
MetLife Retirement Plan clients can choose an automatic IRA provider other than Millennium Trust but would not benefit from the coordinated participant information and asset transfer, the company said.
With more than 9,000 client accounts, Millennium Trust is a provider of administrative and IRA custody services specializing in large volumes of small IRA accounts, according to the announcement.