“As a plan sponsor, if you have an opportunity to deal with lost participants and do something with uncashed checks, why wouldn’t you do that?” asks Mark Koeppen at FPS Trust.
Tag: missing participants
If there are missing participants that plan sponsors have not made a genuine effort to find, “the entire plan could be disqualified under the tax code and the plan fiduciaries may be found to have breached their ERISA duties,” says Norma Sharara, a partner with Mercer.
In an open letter asking for more detailed guidance, the ERISA Industry Committee spells out what it says are “examples of missteps” by the DOL, including “issuing letters asserting breaches of fiduciary duty when there is no applicable legal guidance.”
The Plan Sponsor Council of America has heard concerns from its members that they have been or may be subjected to enforcement actions even though the DOL and IRS have not issued comprehensive guidance on missing participants that provide a clear roadmap for compliance.
“Do the Experts have any Treats for us this Halloween, or only Tricks?”
The agency is proposing that termination forms may be filed electronically and that plan sponsors be offered a pre-filing consultation.