The Association of Canadian Pension Management has submitted a letter to the Canada Revenue Agency asking for help to locate missing pension plan members.
Specifically, the association asked the agency to reinstate a national search unit that would allow pension administrators to request that a letter be forwarded on their behalf to retirees for whom they have no information.
“…It was a cost effective-way to contact missing plan beneficiaries, and it was often successful,” said Brian Hocking, chief executive officer of the organization that represents more than 400 retirement plans.
CRA currently provides a similar letter forwarding service, but pension administrators can only access it if they prove they’ve exhausted other search avenues.
Read: Pension administrators burdened with tracking down missing retirees
In the letter, Hocking explained that pension administrators have been concerned about tracking missing plan members for some time now, as discussed in an Ontario regional event the association hosted in April 2016.
Hocking noted this information gap has led to issues in payments to plan members. In some cases, pension administrators that were unaware a member had passed away deposited too much into a bank account or did not pay the correct surviving spouse or beneficiary.
As well, the association asked the agency to allow pension plan administrators to access its records to confirm whether or not a plan member is living or deceased.
“The recovery process can be costly and complicated for plan administrators…” wrote Hocking. “These services will minimize potential liability to registered pension plans, help eliminate fraudulent receipt of payments, and reduce hardships on individuals impacted by not receiving a portion of their retirement income or having to repay amounts that were overpaid.”
Read: Pension association calls for flexibility and clarity in CAPSA governance guidelines