Orphaned Retirement Accounts

Hello, my name is Alex, and today we will discuss the rising issue of orphaned retirement assets in the U.S.

In the early months of 2021, an alarming revelation emerged. Over one billion dollars worth of retirement accounts remained unclaimed, labeled as "orphaned." These are assets within retirement plans whose rightful owners have become unreachable. With such a staggering number in play, the Department of Labor stepped in, introducing a set of best practices. These guidelines aim to assist plan sponsors in both managing their retirement plans and locating these elusive participants.

So, how does one embark on this intricate search? Initially, the key is to reach out through all communication channels provided by the participant, be it email, phone, or physical address. If this proves futile, diving deeper into other contacts the participant may have provided during their onboarding or kept in their HR files might shed some light.

For example, communication with the employee's emergency contacts could potentially yield some fresh information. Sometimes, checking with coworkers or beneficiaries can provide the missing puzzle piece. Broadening the search to public online platforms could also unearth some leads. And when all else fails, premium services, such as hiring a private investigator or tapping into credit bureau databases, might just be the golden ticket.

Maintaining a meticulous record of each effort is of paramount importance. Not only does it exhibit a genuine endeavor in locating participants, but it also ensures that every individual, irrespective of the duration of their absence or the size of their account, is treated with the same rigorous diligence. This consistency is instrumental in ensuring both fairness and compliance.

For more information on orphaned retirement accounts, contact us today.