Plan sponsors need to make a greater effort in preventing former plan participants from becoming “lost” (i.e., losing contact with them), as well as establishing procedures that outline what happens if contact is lost with such participants, according to recent
findings by the Society for Human Resource Management.
The findings discuss:
- What to do with account balances less than $5,000
- What to do with account balances greater than $5,000
- Application of abandoned property laws and dormancy periods for unclaimed amounts
- The death of the former participant as a distributable event
- How ERISA rules apply
- Terminated plans
As part of its plan services, NADART has procedures in place regarding lost participants. For information about sponsoring one of our retirement plans, please contact one of our representatives at (800) 462-3278, ext. 7254 or nadart401k@nada.org.