It has long been a challenge for employers to keep track ofemployees once they are no longer on the payroll. People relocate,marry, divorce, change their names and ultimately pass on. Couplethat with the mobility of the 21st Century workforce and theincreased use of auto-enrollment programs, and employers findthemselves with an ever-increasing population of missing orunresponsive former employees; many of whom are not even aware thatthey have a balance in their former employer's retirementplan.  These missing former employees are considered planparticipants under the law, posing a serious challenge foremployers.

The DOL and missing participants

The Department of Labor  estimates that tens ofthousands of participants lose track of an estimated $850 millionin 401(k), 403(b), 457 and other defined contribution assets eachyear.  These missing former employees are still consideredplan participants under the law. The Internal Revenue Service(IRS), DOL, and the Pension Benefit Guaranty Corporation (PBGC)have made it clear that it is the employer's responsibility to findthese former employees.  These agencies have emphasizedthe importance of employers maintaining and documenting a prudentprocess to verify the efforts made to find missing or unresponsiveformer employees with an account balance in the plan.