The National Institute of Pension Administrators (NIPA) annual conference was held April 26th to 29th in Las Vegas. Based on our conversations with many of the third-party administrators (TPAs) and pension professionals in attendance, it was a beneficial, educational experience for everyone. The majority of these service providers indicated that they are “often the ones on the ‘front lines’ handling issues along with the plan sponsor”. This includes dealing with the growing concerns around missing or terminated participants. Whether you’re talking about a plan termination or managing the terminated participant population within an active plan, there is a fiduciary responsibility to locate and communicate in a timely fashion with plan participants. When the plan sponsor is confronted with these issues, they will often turn to their TPA for assistance.  As a result TPAs are very interested in best practices and solutions surrounding this pressing topic.

For evidence of this, look no further than the breakout session that dealt specifically with the issue of plan terminations. It was so highly attended that they packed the room and had to bring in extra chairs.  Unfortunately more and more plans are terminating, and understanding the nuances involved with the termination process is more important than ever. There was a palpable murmur of agreement in the room when the issue of locating missing participants during a termination was broached by the moderators. It was suggested that the best route for locating participants was partnering with a third-party vendor reasoning that this approach is far more effective than utilizing letter-forwarding services. While we appreciate the free advertising, it’s important for TPAs and plan sponsors alike to understand that outsourcing the search responsibilities makes sense both from an operational perspective and a compliance perspective, as this is very specialized work and there are many ERISA rules and guidance to follow. Further, smart TPAs are realizing that partnering with a specialist like RCP casts them in a better light by providing better results for both the plan sponsor and the plan participants.

If you’re looking for information about how to create a missing participant program or complete a plan termination process for one or more of your clients, call 267-607-4120 or click here.

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