The Pension Benefits Guaranty Corp. has published a proposed rule that would expand its current Missing Participants Program to cover participants in terminating 401(k) plans.
Under the proposal, sponsors terminating 401(k) plans would be able to use the PBGC to warehouse the accounts of missing participants — those workers that have separated from an employer but left their assets in plan. The PBGC would then track the participants with the goal of ultimately reconnecting them with their assets.
Voluntary participation
Participation in the program would be voluntary, and would cost sponsors a fee of $35 per missing participant, which “would not exceed PBGC’s costs” to transfer and hold the assets, and then track down participants, according to the proposed rule. There would be no charge to track accounts with less than $250.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
