NIPA NEWS: Participant Uncashed Checks of a 401k Plan can be time-consuming for plan sponsors and plan fiduciaries.
Recently Trina Gross, President-elect of the National Institute of Pension Administrators (NIPA) and CEO of Acuff and Associates spoke with Fred Barstein, Founder and CEO of 401kTV discussed the challenges that arise when plan participants with outstanding balances cannot be located. This can occur when a participant uncashed check may reach the participant, but the item may have been lost. Or possibly the check was sent to an old address on file. Whatever the reason, it is important that the funds continue to be treated as an asset of the trust. The ongoing challenge remains – the plan sponsor needs to locate the participant or the beneficial owner of the funds. Ms. Gross points out that your Third Party Administrator (TPA) can help Plan Sponsors with the task of locating the rightful owner of the plan assets.