An employee has terminated, what do I need to do to request a payout?

Complete a Distribution Request Form and mail or fax to:

Compensation Consultants, Inc.
1605 Woodridge Dr. S.E.
Port Orchard, Washington   98366

Fax:  360-871-4598

How long will it take for the ex-participant to receive his or her paperwork?

If your plan allows for immediate distributions, we make every effort to mail the paperwork to them within a week.

I mailed the Participant Termination Notice, however the ex-participant has not received the distribution paperwork.

Your plan may provide for distributions after the anniversary date.

This information is included in your plan documents and as a reference on the Summary of Major Provisions in the last annual report. (Please see: DISTRIBUTION TO TERMINEE.) After anniversary date distributions require the accounting to be completed for the last plan year prior to payouts. CCI will hold the paperwork until this has been accomplished.

Why do we have to wait for the accounting to be completed?

This is a provision of your plan. If you have a pooled account, earnings and losses will not show up until the accounting is completed.

Can we pay just one person out now?

Distributions are to be paid in agreement with the plan documents. If you have pooled assets, it is to everyone’s benefit to wait until after the plan year accounting has been accomplished. Plans may be amended to allow for immediate distributions. However, this is a provision you should discuss with your consultant, Marty Mobley or Brian Mohoric.

Can you call the terminated participant and explain the process?

Yes. We are happy to do notify the terminated participant of the payout procedure.

I’ve just received your memo and signed paperwork instructing me to disburse the participant’s funds. What do I do next?

Using our memo as a guideline, contact the investment house or your investment representative and request that the funds be disbursed.
If your investments are with SAFECO, Manulife or Aetna, we have also provided a completed form that needs to be signed and mailed directly to them

What do I do with the 20% withholding?

Deposit this withholding just as you would your regular payroll tax, using the “945” designation for the type of tax.

Why do we have to have this paperwork done?

Regulations require that certain information be provided to each participant prior to electing payout to be paid out from a retirement plan. This paperwork provides the documentation that these requirements have been met.