New Labor Guidance Helps Retirement Plans Find Missing Participants

Labor released three forms of guidance:

• Best Practices for Pension Plans describes a range of best practices fiduciaries of retirement plans, such as 401(k) plans, should consider as steps their plan could take to help reduce missing participant issues and ensure that plan participants receive promised benefits when they reach retirement age;
• Compliance Assistance Release 2021-01 outlines the general investigative approach that will guide all of EBSA’s Regional Offices under the Terminated Vested Participants Project and facilitate voluntary compliance efforts by plan fiduciaries; and
• Field Assistance Bulletin 2021-01 authorizes, as a matter of enforcement policy, plan fiduciaries of terminating defined contribution plans use of the PBGC missing participant program for missing or nonresponsive participant’s account balances.

Jeanne Klinefelter Wilson, acting head of EBSA, said in a statement that the guidance reflects Labor’s “ongoing commitment to help plan fiduciaries ensure that their plan participants and beneficiaries receive the retirement benefits that they worked so hard to earn.”

In fiscal 2020 alone, Wilson said, “EBSA’s investigators helped missing and nonresponsive participants recover benefits with a present value in excess of $1.4 billion.”