Human Resource & Labor News
www.agc.orgOctober 14, 2014 / Issue No. 5-2014
AGC Home Page
Email our Editor
Search Back Issues
Forward to a Friend
Subscribe
Printer Friendly
On the Inside
Equal Employment Practices
AGC Offers New Construction-Focused Anti-Harassment DVD and Webinar
New VETS-4212 Report Replaces VETS-100
OFCCP Joins EEOC in Considering Gender Identity Discrimination Part of Sex Discrimination
Wages & Benefits
Final Rule for Federal Contractor Minimum Wage Issued
Year-to-Date Collective Bargaining Yields Average First-Year Increase of 2.3 Percent
First National Private Insurance Exchange to Serve the Commercial Construction Industry Begins Offering Coverage Quotes
Guidance Issued for Locating Missing Participants in Terminated Defined Contribution Plans
Labor Law
Secondary Employer’s Trespass & Nuisance Claims Against Union Are Not Preempted by Federal Labor Law
Guidance Issued for Locating Missing Participants in Terminated Defined Contribution Plans
 

The Employment Retirement Income Security Act requires plan fiduciaries to make reasonable efforts to locate missing participants or beneficiaries so that they may direct the distribution of their plan accounts. As a result, the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) recently published Field Assistance Bulletin No. 2014-01, which lays out the steps fiduciaries of a defined contribution plan must take to locate missing participants before making distributions following a plan termination.

The employer’s first responsibility in terminating the plan is to notify participants that the plan is being terminated and that their benefits will be distributed. This initial notification may be done using certified mail or by electronic notification. If the participant does not respond to the notice, or if the plan fiduciary has a reason to believe that the plan does not have the most current address, then the fiduciary should take additional steps to locate the participant. The additional methods required by EBSA include the use of certified mail, a review of related plan and employer records, an interview with the designated plan beneficiary, and the use of free electronic search tools.

EBSA also identified additional steps for employers who complete the required steps and fail to locate a participant such as using paid Internet search tools, commercial locator services, credit reporting agencies, information brokers, or investigation services. Use of these additional methods should be considered depending on the amount in the participant’s account and the cost of using such methods. If these methods fail, EBSA recommends rolling the participant’s funds into an individual retirement account (IRA) as a first option, or opening an interest-bearing bank account. Transferring the funds to a state unclaimed property fund may also be necessary if the fiduciary can’t find an IRA provider who will take the rollover funds.


Return to Top

2300 Wilson Boulevard, Suite 300 • Arlington, VA 22201 • 703.548.3118 (phone) • 703.548.3119 (fax) • www.agc.org
AGC Home | About AGC | Advocacy | Industry Topics | Construction Markets | Programs & Events | Career Development | News & Media

To ensure delivery of AGC’s Human Resource & Labor News, please add 'communications@agc.org' to your email address book or Safe Sender List. If you are still having problems receiving our communications, visit our white-listing page for more details.

© Copyright The Associated General Contractors (AGC) of America. All Rights Reserved.


The Associated General Contractors of America | Quality People. Quality Projects.