DOL Launches Online Filing System to Help Termination Administrators

The Department of Labor (DOL) announced on July 19th that its Employee Benefits Security Administration has launched an online system that will help qualified termination administrators submit information required by the department’s Abandoned Plan Program more efficiently.

Since 2006, the program has facilitated benefit distributions from abandoned individual account retirement plans, such as 401(k) plans, by enabling qualified termination administrators to wind up these plans’ affairs using streamlined procedures. The new system introduces an online submission option for administrators, complementing existing email and paper methods. The platform is intended to enhance the Abandoned Plan Program by easing plan terminations and benefit distributions. Recent updates, effective July 16, 2024, allow Chapter 7 bankruptcy trustees and their designees to serve as qualified termination administrators and compensate themselves for services related to terminating and winding up bankrupt companies’ retirement plans.