Some of your clients may soon hear from the government that Uncle Sam has cash for them.
The Employee Benefits Security Administration (EBSA), part of the U.S. Department of Labor, is preparing to help MetLife Inc. and Brighthouse Financial Inc. dispose of about 1,600 retirement plans that look as if they might be abandoned, and to shut down another 400 plans with a very low asset value.
The EBSA Abandoned Plan Program could help MetLife and Brighthouse return about $116 million in plan assets to about 20,000 plan participants, officials say. Distributions could average about $6,000 per participant.
(Related: DOL Looks to Rescue Orphans)
Ascensus Trust Company will help MetLife and Brighthouse put the plans in the Abandoned Plan Program, officials announced today.
MetLife carved its individual life and annuity operations out to form Brighthouse a year ago.
The Abandoned Plan Program staff will help the companies review any 401(k) plans or other individual account plans that have had no known activity for at least 12 consecutive months.
An asset custodian may be able to hand a plan over to the government’s Abandoned Plan Program if the plan has had no contributions or distributions for at least 12 months.