Time Constraints with Retirement Plan Balances

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Today we will be discussing time constraints with ex-employee retirement plan balances.

When an employee departs from our company, it's crucial to be informed about the retirement assets they've accumulated. According to both the Department of Labor and Erisa law, there is no specific duration set for how long assets can remain in the former employer's retirement plan. Erisa was established with the individual's best interests in mind, ensuring both current and ex-employees retain the right to decide where their assets are best held.

As a plan sponsor, our preference is for ex-employees to be well-informed about their choices. While we don't impose any obligation, we do offer reminders to ex-employees about potential options for their assets. We believe that providing this information promptly upon an employee's departure leads to better informed decisions.

For more information on time constraints with ex-employee retirement plan balance rollouts,  contact us today.