July 13, 1990
TO: ABANDONED PROPERTY TASK FORCE
PENSION COMMITTEE NO. 15-90
RE: COMMENTS REQUESTED ON PROPOSED CHANGES TO THE
UNIFORM UNCLAIMED PROPERTY ACT
__________________________________________________________
Attached is a letter concerning changes to the Uniform
Unclaimed Property Act which are being considered by the uniform
law committee of the National Association of Unclaimed Property
Administrators. The letter requests comments on specific issues
concerning stock dividends, underlying shares, dividend
reinvestment accounts, individual retirement accounts and
qualified pension plans and includes a number of questions
pertaining to those areas. Also attached are the relevant
provisions of the Uniform Act.
With regard to unclaimed qualified pension funds, the
Institute understands that the Department of Labor has reached
the tentative conclusion that state escheat laws are generally
preempted by ERISA. Thus, any state escheat law would not be
applicable and the states, or in their absence, pension plan
administrators should utilize other procedures in distributing
funds to lost participants and beneficiaries. On the other hand,
the Internal Revenue Service allows state escheat laws to apply
to accounts of lost participants.
The letter indicates that the committee's next report is
due shortly after Labor Day. Therefore, please provide me with
your comments on the attached letter by August 1, 1990.
Amy B. Rosenblum
Assistant General Counsel
Attachments