Locate Missing Participants Using LifeStatus360’s Confirmed Locate Services
Making sure your data files are current is one of the best ways to ensure that your company isn’t overpaying on pension benefits or life insurance funds. Due to variable circumstances, such as address or status changes, companies can lose their participants and inevitably wind up overpaying on their funds despite the location of their participants and/or participants’ beneficiaries.
LifeStatus360 provides a Missing Participants process to assist you in finding and maintaining location information on the participants in your population. We provide Death Audit Services and Life Audit Solutions that can determine the current address and mortality status of your participants, allowing you to save time, money and frustration with missing participant files and benefits.
What is a Missing Participant & What Causes Missing Participants?
A missing participant is defined as a qualified plan participant who cannot be located by the fiduciary for the purposes of executing transactions, such as required minimum distributions and distribution checks, or for whom mailings are consistently returned due to an incorrect address. It is estimated that up to 6% of plan participants are considered “missing” and require locating, but traditional location methods are slow and often inconsistent. Missing participants can cause many administrative burdens, fiduciary risk and increased plan costs.
Missing participants occur for a variety of reasons, including:
- Changes of residence: The average American moves approximately 12 times over the course of his or her lifetime. In any given year, 1 out of almost every 6 Americans will relocate.
- Changes in employment: Americans change jobs approximately 7 to 8 times, on average, over the course of a 40 year career. This means that millions of defined contribution participants will change jobs each year.
- Early mortality: Mortality tables report that, on average, more than 16% of plan participants will die between the ages of 40 and 65. This indicates that 1 out of 6 plan participants will die prior to the traditional retirement age.
Why is it Important to Locate Missing Participants?
Locating missing participants reduces administrative burdens, fiduciary risk and potentially increased plan costs. Maintaining current addresses for plan participants is critical to providing those participants with up-to-date information, such as payable benefit notices, and to make required minimum distributions (RMDs).
Failure to establish and/or follow procedures to do a confimed locate on missing participants can be considered a breach of fiduciary duty and can subject plans to penalties.
How LifeStatus360 Can Help You Locate Missing Plan Participants
At LifeStatus360, we want to help your company locate your missing participants to reduce the chances for your company to fall under government scrutiny and potential legal issues. Our confirmed locate solutions can help you location your missing participants in a variety of ways, including:
- Keeping track of participants before they’re lost with our Tracing Program
- Periodic data scrubbing
- Death Audit checks
- Address search, verification and correction
- Beneficiary and emergency contact Death Audit check and address search
- LifeStatus360 Confirmed Locate methodology
- Certificate of attempt and metrics summary
Each of these services allows us to provide your company with the information you need to keep your records accurate and up-to-date. Sign up for our 7/30 Challenge and start receiving updates in as little as 24 hours.
Contact LifeStatus360 to Confirm the Location of Your Missing Participants
Maintaining accurate and up-to-date information about your plan’s participants is crucial to avoid costly fiduciary and legal consequences. The traditional confirmed locate methods are outdated and rarely produce the desired outcome. At LifeStatus360, we provide the tools to help you maintain the integrity of your participants’ data to ensure your fiduciary compliances.
Take our 7/30 Challenge and experience the difference our solutions provide. Request a walk-through webinar to see how user-friendly our proprietary SaaS platform is, and sign up for our special 30-day trial period. Contact us online or via telephone at 888-LIFE-360 (888-543-3360) to learn more about how our data compliance solutions can work for your business.