TRANSCRIPT:

Tom Hawkins: Welcome to another edition of the RCH Consolidation Corner Channel, where we provide you with audio content that explores key issues in the preservation and consolidation of retirement savings. In this episode, we focus on when and how plan sponsors should consider increasing the intensity of their searches for missing plan participants. We hope you’ll find the audio enjoyable and informative.

NARRATOR: Electronic searches are the foundation of any missing participant search strategy. The best of these commercially provided e-searches will access multiple data sources, use specialized algorithms to deliver optimal results, and efficiently handle large search volumes at reasonable costs. E-searches work best for routine address verification, identifying stale addresses from returned mail, and as a first step before more intensive search methods.

However, periodic e-searches alone may not be sufficient in certain situations. More thorough searches become necessary when participants approach distribution events like Required Minimum Distribution age, have uncashed checks, may be deceased, are unresponsive during plan termination, or when minimal participant data exists.

First, to increase search intensity, consider conducting searches more frequently. Americans relocate nearly 12 times during their lifetime, with about one in six moving annually. More frequent searches can identify these changes before serious issues arise.

Second, expanding data sources beyond standard e-search databases may be necessary when benefits risk going unpaid. These manual searches by specialists access additional tools to determine current addresses or life status.

Third, you should know that the "gold standard" for search quality is direct participant verification. This requires outreach through mail, email, phone, and social media, plus offering self-service update options through web portals or interactive voice response systems.

Fourth, monitoring life status becomes increasingly important as participants age. About 16% of plan participants die between ages 40 and 65, with mortality rates accelerating with age. Ongoing death monitoring services provide cost-effective surveillance of participants' life status.

Fifth, following regulatory guidance builds confidence in your search process. The Department of Labor has issued specific protocols for locating participants in terminating defined contribution plans and has published best practices that include checking related plan records for emergency contact information.

Sixth, creating a detailed search audit trail becomes more critical as search intensity increases. Document all search activities and contact attempts, including dates, methods used, and outcomes.

Finally, to minimize the burden of missing participant searches, promote plan consolidation through auto portability (as delivered by the Portability Services Network), avoid automatic cash-outs for balances under $1,000, and consider hiring professional search services to reduce staffing needs while improving results and documentation.

Taking these steps, when necessary, will help minimize fiduciary risks and ensure participants receive their rightful benefits.

To download an RCH Address Location services brochure, visit https://info.RCH1.com/rch-lost-and-missing-service.

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