Faced with increased scrutiny from the Department of Labor about lackluster efforts to find missing retirement plan participants, employers are asking for permission to send uncashed pension checks—money that belongs to former workers–to state unclaimed property funds.
“It’s unbelievable, but everybody has that story of a beneficiary who is sitting on a check they refuse to cash with no discernable reason,” says Aliya Robinson, senior vice president of retirement and compensation policy for ERIC, an industry group representing large employers. “Employers want to make sure they’re doing what they need to do, but there’s no guidance.”
Ashlea Ebeling | Forbes