Maintaining updated Plan Participant Records to ensure Fiduciary Compliance
Recent guidance issued by the U.S. Department of Labor (DOL) addresses fiduciary and enforcement issues related to missing and non-responsive retirement plan participants. A key best practices category highlighted by the DOL is maintaining accurate census information for the plan’s participant population including spousal and beneficiary information.
What happens if a participant is deceased and census records – in particular, spouse/beneficiary information – are incomplete or haven’t been accurately updated? This can lead to unpaid benefits which, in addition to denying benefits earned, can be a red flag for DOL auditors. Through its BeneSearch product, PBI Research Services offers a solution to addressing the issue of missing spouses/beneficiaries for deceased participants.
PBI’s BeneSearch solution includes:
- confirmation of participants’ marital status at time of death
- confirmation of spouses’ current status (living/deceased)
- updated contact information (address) for spouse
- updated relative (possible beneficiary) information including names/addresses
Using the information from BeneSearch, plan sponsors can update records and ensure benefits earned are appropriately distributed.
To learn more about how PBI’s BeneSearch solution can help with efforts to meet your fiduciary obligations, contact us.
