PRC letter to the IRS on OMB 1545–2187, Proposed Collection of Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits

PRC letter to the IRS on OMB 1545–2187, Proposed Collection of Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits

The Pension Rights Center sent a letter to the IRS urging the Service to strengthen protections for “deferred vested” participants – those who have earned retirement benefits but have left their jobs before collecting benefits. The Center specifically asked the Service to change its guidance to require plan administrators to provide a single unified individual benefit statement to these participants– rather than allowing plans to provide this vital information of benefit entitlement piecemeal in different documents.   In its letter the Center emphasized that this individual deferred vested statement is key to “providing legal documentation, enabling participants and their families to prove the fact and amount of their entitlement, many years, even decades, after separation from service.”