From time to time pension plan sponsors are audited by the Internal Revenue Service (IRS) or the Department of Labor (DOL). One issue that often comes up during an audit is the process for locating lost participants or beneficiaries who are entitled to plan benefits.
Plan sponsors need to have well-defined procedures in place to perform a diligent search for lost participants. Otherwise, they could end up spending a lot of time documenting the details or defending their actions (or inactions) in an audit.
Milliman’s latest issue of DB Digest by David Benbow explains what steps the IRS or DOL expects plan sponsors to follow and document when searching for lost participants. To read the article, click here.