Best Practices for Benefit Plan Distributions
Many employer-sponsored benefit plans include distribution offerings to help protect employers and employees. But without proper management, these features can rack up fees and become unnecessary administrative burdens for your organization.
Time for an employee benefit plan check-up? Learn how we can help improve operations and tighten controls.
Our employee benefit plan distribution series covers the different distribution options your plan may provide, and gives guidance on ways to manage them.
Whether you’re wondering how to properly execute cash outs or aren’t sure how to document a hardship distribution, our professionals provide resources to help you manage your benefit plan.
It’s expected that participants will provide documentation leading up to their distribution — but approving and filing these documents is often more convoluted.
Many plans require a QJSA — if yours includes this distribution, you need to know your responsibilities to protect participants and their survivors.
Employers should scrutinize their ERISA plans to make sure they’re not paying fees on accounts that belong to employees who no longer work for their organization.
Making sure participants know how to roll over their accounts can help limit your administrative work and, for small organizations, keep audits at bay.
Unlike most benefit plan distributions, which are processed by systems, distributing a deceased participant’s account requires active involvement from an employer.
Your plan committee may not be in a position to determine whether a plan participant is disabled — a disability determination professional can help draw a confidential conclusion.
Future topics in this series will cover:
- Qualified domestic relations order distributions