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DOL tackles the 'missing plan participant' problem, offering retirement fiduciaries a new option

The Department of Labor will not take action, under ERISA, against plan fiduciaries that transfer entire benefit payments owed to missing participants of $1,000 or less if certain conditions are met.

By Lynn Cavanaugh | January 15, 2025 at 11:32 AM
Credit: Knut/Adobe Stock

Tracking down missing retirement plan participants is a pain point for plan sponsors since it can drain time and resources, particularly for small employers. However, it is the plan sponsor’s fiduciary duty to do so.

Yesterday, the Department of Labor’s Employee Benefits Security Administration offered some assistance for these plan sponsors with the announcement of an enforcement relief policy.  The policy provides retirement plan fiduciaries with an option to help manage small benefit amounts owed to individuals who cannot be located.

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