Automatic Rollovers Remain the Best Solution for Missing Participants

September 5, 2019
By Terry Dunne
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Missing or non-responsive former employees can drain plan resources, impairing effective plan administration and exposing you to potential fiduciary risks. Automatic rollovers were created to provide an easy way for retirement plans to remove costly, small balance accounts of former employees, while preserving the tax-deferred status of their savings.

At Millennium Trust, we are passionate about improving retirement readiness. Automatic rollovers remain the industry-accepted solution for reconnecting participants with their accounts in ways that benefit participants and plan sponsors.

  • Safe harbor: Automatic rollovers are the only solution to dealing with missing participants that is covered by an explicit Department of Labor (DOL) safe harbor from fiduciary responsibility.

  • Portability: Automatic rollovers give participants a chance to choose the right path for their retirement assets, including rolling those assets into another IRA or employer plan.
  • Fighting leakage: Automatic rollovers protect the tax-deferred status of missing participants’ retirement assets, therefore limiting the amount of asset leakage from the retirement system.

Today, automatic rollovers are an available, easy-to-implement and free solution that is widely used by recordkeepers and plan sponsors. They decrease the burden (including costs and potential liabilities) on plan sponsors and act as a temporary tax haven for participant assets.

Our automatic rollover solution has been implemented by more than 100,000 retirement plans, providing a simple, secure and client-friendly solution that is easy to use for both the plan and former employees. To date, we’ve processed almost two million automatic rollovers, helping to reunite participants with their retirement savings.

Learn more about how we can help your business deal with missing participants.

The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice.

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