What does a plan sponsor do when a participant goes missing?
If a participant has a balance in the plan—even if he/she is terminated, the plan sponsor has a fiduciary obligation to ensure that participant is receiving required plan information, such as a statement, the Summary Annual Report, fee disclosures and updated Summary Plan Descriptions.
So, what does a plan sponsor do when a participant goes missing?
Many plan documents have a section that details how to handle missing participant account balances, and if yours does, you should follow these procedures. You should also make a reasonable effort to find lost participants. You can try using certified mail, checking related employer records, contacting the participant’s beneficiary or using free electronic search tools. Randall + Hurley can also provide you with assistance in locating lost participants or transferring their accounts to an IRA..