EBSA has issued final regulations providing guidance and procedures pertaining to abandoned plans (sometimes known as “orphan plans”). Summary of the regulations from the preamble:
The first regulation establishes a procedure for financial institutions holding the assets of an abandoned individual account plan to terminate the plan and distribute benefits to the plan’s participants and beneficiaries, with limited liability. The second regulation provides a fiduciary safe harbor for making distributions from terminated plans on behalf of participants and beneficiaries who fail to make an election regarding a form of benefit distribution. The third regulation establishes a simplified method for filing a terminal report for abandoned individual account plans.
You can access the final regulations here. EBSA has also finalized Prohibited Transaction Exemption 2006-06, a class exemption for services provided in connection with the termination of abandoned plans.