OCTOBER 2008 Pension Plan tip of the month...

Most Common Issues that Delay the Processing of Distributions

• Participant completes incorrect form
• Outdated Form
• To avoid this, proactively check for new forms via the website or by contacting your Account Executive
• Form used for a different purpose than intended
• In-Service form completed for a Termination Distribution is the most common
• Rule of thumb: to process a termination distribution, there must be a place to write in the termination date on the form

• Participant does not provide complete wiring, direct deposit or check instructions
• Missing ABA Number
• Missing Account Number
• Missing Account Type
• Rollover: New Employer’s Plan or IRA
• Cash Distribution:  Checking or Savings Account

• Form not signed by an authorized signer
• Confirm with Paragon or record keeper if unsure of who the authorized signers are for the plan 

• Termination date not provided
• Paragon generally only has data up to the end of the last plan year. If the participant terminates in the current plan year, Paragon will not have the termination date on file
• The termination date is necessary for the service provider’s system,  often hours worked are required to accurately calculate vesting 

• Participant selects conflicting tax withholding options
• Read forms and instructions carefully, each service provider requires different data
• Call Paragon with any questions 

• Distribution paperwork is sent directly to the service provider
• Vesting and other data may be missing from the form
• Since the service provider must send the paperwork to Paragon for the missing data, it would be time effective to forward the paperwork to Paragon first.

*If the recipient of this communication is not who processes distribution paperwork, please forward this to the appropriate person. If you have any questions about your plan, please call your account executive.   

*For your employees’ protection, remember not to send complete social security numbers through unsecured email.