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Investigation of Defined Benefit Plan Payment Practices

The DOL is focusing on the investigation of benefit payment practices of several Fortune 500 companies, concentrating on procedures, such as locating missing participants, informing deferred vested participants that a retirement benefit is payable, and beginning benefit payments when a participant reaches age 70 1/2. A DOL spokesperson said that the agency is tracking 5500s and looking for DB plans with large numbers of vested participants. Plans could be subpoenaed for information or issued audit notices.

www.plansponsor.com; February 24, 2016.