Death Audit Services
Ensure your participant information is up-to-date and accurate
Death audits are a crucial component of pension plan management. Done correctly, they help businesses ensure the accuracy of plan participant information and prevent invalid and fraudulent claims.
October Three is your expert partner in the death audit process, from cost control to legal compliance to participant communication. Performing an audit doesn’t look the same for every business, so we customize our services to meet your company’s needs.
Our services
By leveraging our death audit expertise, your company can enhance its operational efficiency, protect its finances and uphold its commitment to accuracy and accountability.
Participant and beneficiary accuracy
By conducting a review of your pension plan’s participants and their beneficiaries, we can update records and remove deceased individuals from the active participant list, ensuring accurate distribution.
Cost control
We’ll promptly identify and process death claims to reduce financial loss and maintain pension plan sustainability.
Regulatory compliance
By identifying plan beneficiaries, confirming eligibility and following proper distribution procedures, we’ll ensure that your company’s pension plan meets all applicable laws and regulations.
Risk management
Being proactive and identifying pension plan risk protects your financial resources, safeguards your plan’s reputation and instills confidence in participants that their funds are managed securely and responsibly.
Participant communication
Transparency and trust are essential when it comes to participant communication. We’ll ensure that they receive accurate, thoughtful and timely information per their status in your plan.
Plan funding and financial stability
Death claims can impact plan liability. We’ll assess the financial impact of mortality on your plan and provide recommendations for funding and investment adjustments to ensure the plan’s long-term sustainability.
How It Works
Phase 1: Collect data & complete death audit
This first phase focuses on gathering the data to complete an accurate death audit. Once complete this initial audit, we can then evaluate results and related evidence to update plan data.
Phase 2: Stop retiree payments
Now, we can eliminate any faults in the plan data and remove ineligible participants. We will then assess overpayments, recall ACH transactions and stop any uncashed checks.
Phase 3: Send letters
In this phase, we contact beneficiaries and estates to communicate survivor benefits and summarize overpayments.
Phase 4: Benefit processing
In this optional phase, we calculate survivor benefits, offset overpayments, create benefit commencement kids and complete election processing. We only complete this phase if it is relevant to your specific needs.
Phase 5: Audit report
With all of this information, we can now create a detailed death audit report which will calculate plan savings and document administrative efforts.
Phase 6: Ongoing support
Our job doesn’t stop here – we offer continuous support even after the death audit is complete.
Death audit FAQs
What is the purpose of conducting a death audit for my company's pension plan participants?
+The goal is to ensure accurate participant information within your company’s pension plan. Identifying and removing deceased individuals from the plan's records helps maintain data integrity, prevents erroneous payments and confirms compliance with legal and regulatory requirements.
How often should my company perform a death audit?
+The recommended frequency depends on plan size, participant demographics and industry norms. We will assess your unique situation and recommend an appropriate audit frequency — considering potential risks, cost-effectiveness and regulatory guidelines.
What does the process entail?
+We confirm participant data by cross-referencing information with public records and Social Security Administration data. Our sophisticated data analysis techniques help identify potentially deceased individuals and validate their status in your pension plan.
What are the potential risks associated with inaccurate participant information in a pension plan?
+Outdated information can lead to financial risks, such as payments to deceased individuals or overpaying beneficiaries. It can also result in compliance issues, reputational damage and legal liabilities. Death audits mitigate these risks by ensuring accurate and up-to-date participant records.
How would the process benefit my company's pension plan administration?
+Some benefits of death audits include improved accuracy of participant data, reduced financial risks, enhanced compliance with regulatory obligations, streamlined administration processes and increased operational efficiency — contributing to the overall effectiveness and reliability of plan administration.
What happens when a deceased participant is identified?
+We will work with you to update the participant's status in the pension plan records. The next steps may involve terminating the payment or transferring benefits to eligible beneficiaries, ensuring compliance with plan rules and legal requirements.
Can you track down beneficiaries of deceased participants?
+Yes, we can assist in locating and communicating with beneficiaries of deceased participants. We have access to various resources and databases to help identify and engage the appropriate beneficiaries, facilitating the smooth transfer of benefits.
How can a death audit help our compliance efforts?
+It ensures compliance by identifying deceased participants, updating records, and adhering to reporting obligations. We stay on top of regulatory changes to help you maintain compliance.
Is a retroactive death audit possible?
+Yes, we conduct retroactive death audits to correct past inaccuracies — helping confirm historical data accuracy, identify any missed discrepancies and align your plan's records with accurate information.
Is it cost-effective?
+It depends on the plan size, participant demographics and the potential risks associated with inaccurate records. Using your figures, we can run cost-benefit analyses to help you assess the likely ROI.
Contact Monica
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