When Pension Plans Send Checks to Ex-Employees, the Problems Are Just Starting

August 27, 2013

This article was featured in Bloomberg BNA's Pension & Benefits DailyTM. Today's retirement plans are facing a new problem — what to do with uncashed checks. Over time, plan sponsors have mailed checks to thousands of ex-employees who participated in their plans, but today the checks remain uncashed. While the number and amount outstanding varies for each plan, collectively they add up to billions of unclaimed dollars. This article outlines the issues surrounding the issuance of distribution checks that are not cashed along with how Automatic Rollover IRAs provide an easy, fiduciary solution to the problem of uncashed checks.