DOL Issues Guidance On Missing Participants For Retirement Plans

On January 12, 2021, the Department of Labor (DOL) issued long-awaited guidance for retirement plan fiduciaries that is relevant to any employer who sponsors a retirement plan that is subject to the fiduciary requirements of ERISA, including 401(k), 403(b), profit sharing, and defined benefit pension plans. Of particular import, the guidance addresses best practices for locating and distributing retirement plan benefits to missing or non-responsive participants. The DOL also includes other helpful guidance, as discussed in more detail below.

Best Practices for Locating Missing Participants

The DOL guidance includes examples of best practices employers and plans might implement for locating missing participants and beneficiaries. At the same time, the DOL points out the importance of the relevant facts and circumstances, including the size of a participant's accrued benefit or account balance and the costs of any search efforts needed.