Nearly half a century ago, Congress passed the Employee Retirement Income Security Act of 1974 (ERISA). This groundbreaking law laid the foundation for the retirement plan industry as it exists today by setting minimum standards to protect participants of voluntarily established retirement and health plans in the private industry.
The DOL-Approved Way to Handle Missing Participant Accounts
Company-sponsored retirement plans, such as 401k and other defined contribution plans, would be much easier to administer without missing plan participants. But with the high mobility of today’s workforce and the fact that many former employees simply forget about their retirement accounts at their previous companies-it doesn’t seem likely the problem will go away any time soon.
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