Missing Distributees Solutions

PenChecks Missing Distributee Solutions

When lump sum distribution checks go uncashed, qualified retirement plans become more complex and difficult to manage. The missing participant is still due the benefit. But if taxes are withheld, paid, and reported to the taxing authorities under a prior tax year, auto rollover or missing participant IRAs no longer offer a viable lump sum distribution solution. Once the funds become non-qualified, they can’t be re-deposited back into the plan without investing significant time and resources into getting the taxes back.

Uncashed and stale-dated checks can also come in the form of uncashed fees paid from plan assets and rollover payments that have gone uncashed. If you struggle with these and other missing distributee program problems, PenChecks has a solution that keeps you compliant, reduces your cost, and relieves the administration burden of managing uncashed or stale-dated checks from ERISA qualified plans.

A Trust Distribution Missing Distributee Program That Works

A leader in missing distributee trust solutions, PenChecks helps you resolve uncashed or stale-dated retirement checks by attempting to locate missing plan participants and reuniting them with their money. If participants can’t be found, we provide an efficient, compliant process for escheating the funds to the proper state authorities.

When PenChecks receives the participant’s name, last known address, social security number and plan funds from the institution representing the uncashed or stale-dated benefit check, we:

    • Establish a taxable savings account (TSA) with PenChecks Trust Company of America on behalf of the participant.
    • Conduct a thorough search to locate the participant in order to pay out the benefit.
    • Invest the funds in accordance with the Department of Labor safe harbor standards for auto rollover (Default) and missing participant IRAs.
    • Register each TSA with the National Registry of Unclaimed Retirement Benefits.

When a missing distributee program participant is located, PenChecks adjudicates their claim, verifies their identity, and transfers the funds to their control. If no claim is made, we escheat the TSA in accordance with the law of the state of the participant’s last known residence. We also issue an annual 1099-INT until the funds are claimed or escheated.

Throughout the process, we assume full responsibility and liability for managing the funds, thereby removing your fiduciary risk.

20 Years of Successful Missing Distributee Solutions

PenChecks’ missing distributees trust solutions have been helping plan providers, sponsors and administrators resolve the challenges of managing uncashed and stale-dated retirement checks for more than two decades.

Our market-tested outsourcing service can save you time and money, resolve compliance issues, and ease the administrative stress involved in managing uncashed or stale-dated retirement checks. As part of our missing distributee program, we also offer lump sum distribution solutions.

PenChecks Missing Distributees, LLC, a leading provider of missing distributee solutions, was formed for the sole purpose of:

  • Assuming the responsibility and liability of servicing funds from uncashed and stale-dated checks that represent benefit payments made from qualified retirement plans that have been taxed.
  • Establishing a special taxable savings account (TSA) based on the value of each uncashed or stale-dated benefit payment.

Once the individual TSA has been established, PenChecks’ missing distributees program uses its best efforts to locate the beneficiary of the funds and register them with the National Registry of Unclaimed Retirement Benefits. If unable to do so, we escheat the funds in accordance with appropriate state regulations.

PenChecks Missing Distributees, LLC serves financial institutions including banks, insurance companies, trust companies, brokerage firms, mutual funds and other select corporations, who offer administration and custodial services to ERISA qualified plans.

PenChecks - Save Time, Reduce Risk, and Lower Operating Costs: Call 800.541.3938 or .