The Missing Participant Problem
Do you have ex-employees who terminated years ago but keep showing up on your plan’s participant list? Have you sent them the distribution election forms but they failed to return them? Or have they been returned by the post office with no forwarding address? Or worse yet, did you write them checks that have never been cashed?
Before Safe Harbor Automatic Rollovers were made available in 2005, these were common problems associated with missing or non-responsive participants with small balances. But now plan sponsors can avoid these problems.
If your plan is designed properly, when participants with small balances fail to complete the plan’s distribution election forms, you can transfer their account balances directly to Individual Retirement Accounts (IRAs) with Liberty Trust Company.
For a brief explanation of how Automatic Rollovers work, click here.
highlights of the Liberty Trust Company Automatic Rollover Program
- Cost to the plan sponsor – $0.00
- Low set up ($25)and annual fee ($25)for participant
- No minimum balance
- Complies with Safe Harbor provision of DOL regulations
- Experienced staff to assist TPAs and plan sponsors
Liberty Trust can help provide a real solution to your Missing Participant problem.