A plan that is not covered by the PBGC or is not terminated still must conduct a reasonable search for missing individuals. There are no specific guidelines as to what constitutes a thorough and diligent search; rather the number of participants who are missing, the amount of benefits involved, and the cost will dictate the appropriate action. There are several alternatives. The Internet has proven to be a valuable tool in the search for lost participants. Individuals can be located by name, city, state, social security number, and telephone number. Some online directories are available at no cost; others charge nominally for their services. If only a few participants are missing, this is the place to start. If larger numbers of participants are involved, it may make more sense to use a commercial locator service or one of the programs discussed later.

Commercial locator services can be retained to find missing participants. The cost of such a service will vary based on the number of research hours involved; however, its search will be more refined than a general search on the Internet. As a result, the cost may seem reasonable when compared to embarking on the search using internal resources.

Both the IRS and the SSA sponsor lost-participant programs. The IRS is the agency most likely to have current information on an individual (remember death and taxes). Its program was set forth in Revenue Procedure 94-22. Although the IRS will not embark on an exhaustive effort to locate missing participants, it will forward a letter to the address it currently has on file for the individual. Curiously, this service is available for all humane situations and is not limited to retirement plans. The cost depends on how many people are involved. If there are fewer than 49 individuals, there is no charge. For 50 or more participants, the fee is $1,750, plus $.01 for each person and $.50 per letter forwarded. The letter can be no more than three pages. It appears that the plan would need to write a letter for the IRS to forward stating that the plan is holding assets and whom to contact, as opposed to a complete distribution package. The IRS also sets forth suggested language explaining the letter-forwarding program.

The disclaimer should read as follows:

In accordance with current policy, the Internal Revenue Service has agreed to forward this letter because we do not have your current address. The IRS has not disclosed your address or any other tax information and has no involvement in this matter.

Requests involving 50 or more are to be sent to:

Internal Revenue Service
Office of Governmental Liaison and Disclosure
6103/ Privacy Operations OP:EX:GLD:O
Attn: Project 753
1111 Constitution Ave., NW
Washington, DC 20224

Requests involving fewer than 50:

Refer to http://www.irs.gov/foia/article/0,,id=123736,00.html

Similarly, the SSA will forward letters if it has a strong, compelling reason to do so. In order to use this program, a valid Social Security number is needed. Here again, complete and accurate records for all plan participants are essential. The fee charged for this service is $3 per letter for up to 200 letters. The request should include the participant's name and Social Security number and the reason for the letter. The SSA will not confirm that the participant has received the notice or provide the participant's address; it will merely forward the benefit notification letter. Requests are to be made in writing to:

Social Security Administration
Freedom of Information Branch
4th Floor Annex Building
6401 Security Boulevard
Baltimore, MD 21235

Article reproduced from "Journal of Pension Benefits"