To help fill a “gaping hole” left by the discontinuation of two government programs, Retirement Clearinghouse LLC (RCH) has introduced a search service to locate missing retirement plan participants, the Charlotte-based company said in a release this week.
The Social Security Administration and the Internal Revenue Service have both decided to stop operating a “letter forwarding program” that helped plan sponsors locate participants who have gone missing due to address changes and other circumstances, the RCH release said.
An estimated 9.5 million defined contribution plan participants change jobs each year, and many leave their accounts behind in former employers’ retirement plans. RCH said the cost to plan sponsors of resolving these accounts is an estimated $48 billion over 10 years.
RCH said it has combined searches of national change-of-address records and commercial databases with Internet tracker and social media search capabilities. It also validates and updates participant data, oversees mailings to last known addresses, and locates missing participants when possible. The service helps plan sponsors meet fiduciary responsibilities.
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