Fresno County Employees Retirement Association (Fcera)

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FRESNO COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION (FCERA) OUTSTANDING INSTALLMENT AND LUMP SUM BENEFIT CHECKS NOTIFICATION (Payroll Unit)

PURPOSE: To timely notify retired and separated members of outstanding/un-deposited checks issued by FCERA.

FREQUENCY OF REVIEW: Monthly

RESPONSIBLE STAFF: Account Clerks in the Payroll Unit and Supervising Accountant

REPORTS REQUIRED: a. Disbursement Bank Outstanding Check Report – Exhibit 1 b. Outstanding Check Letter – Exhibit 2

PROCEDURES:

1. The monthly Outstanding Check Report provides the following detail on outstanding checks (retiree/beneficiary installments and lump sum checks are each detailed on separate reports) issued more than 30 days prior to the date of the report: Check Number, Check Amount, Check Date, Account ID (location ie: GNRL), Payee Last Name and first five digits of a masked Social Security Number. Reports are received around the 15th day of each month.

2. Upon receipt, the Outstanding Check Reports are saved at the following path: G:/shared/retirmnt/acct/payroll/OCL. Upon receipt of the Outstanding Check Report (Exhibit 1) the Account Clerks in the Payroll Unit will review the reports against the Disbursement Bank’s website, PlusWeb, to confirm that the checks are still outstanding. Sometimes the checks clear between the time the report is generated and the time that we are ready to send letters to the participants.

3. Accessing PlusWeb is covered in the procedures titled Accessing PlusWeb via State Street’s Secure Website. Location of the PlusWeb procedure is G:/shared/retirmnt/acct/procedure.

4. Lump Sum Outstanding Check Process a. Review the original disposition form for the refunded member to obtain a telephone number to contact the member. During the phone call, confirm the member’s mailing address and determine if the check is in their possession. If the check is in the member’s possession, request that it be cashed immediately so that it can be cleared from the Outstanding Check Report. If it is determined that that the check is not in the possession of the member, immediately place a stop on the check. An Outstanding Check letter (Exhibit 2) will be sent to member requesting they complete the letter appropriately and return to FCERA before a reissue can be processed. If the member cannot be reached by phone, an outstanding check letter (Exhibit 2) is sent requesting confirmation that the payee G:Shared\Retirmnt\ACCT\Procedure\Outstanding Installment and Lump Sum Benefit Check Notification.doc has the check in his/her possession and request that it be cashed immediately. Outstanding check letters are sent monthly each time a member’s payment shows on the report. It has been FCERA’s experience that most outstanding lump sum payments clear the bank within 60 days of issuance. If there is no response after three months of a payment sowing outstanding, stop the check and re-credit the Trust.

5. Installment Payment Outstanding Check Process a. Review the member’s file to locate a phone number to contact the member. During the phone call, confirm the member’s mailing address and determine if the check is in their possession. If the check is in the member’s possession, request that it be cashed immediately so that it can be cleared from the Outstanding Check Report.

b. If the member did not receive the check due to an incorrect address, immediately stop the check. FCERA will advise member that a change of address form and Outstanding Check Letter will be sent. Upon receipt of new change of address form and completed Outstanding Check Letter, have a replacement check issued.

c. If the member cannot be reached by phone and FCERA has not confirmed the check is no longer in the member’s possession, prepare an outstanding check letter (Exhibit 2) and mail it to the address on file. Depending on how the member responds to the letter, will indicate whether or not to reissue the check. If there is no response after three months of a payment sowing outstanding, stop the check and re-credit the Trust.

d. If the check is still outstanding by the time the next Outstanding Check Report is received, use alternate sources to locate a different address or phone number to contact the member. Determine if there is any returned mail in the member’s file. If there is, speak to your Supervisor about applying the “Excessive Returned Mail Policy” to this member.

e. If the check is still outstanding by the time the next Outstanding Check Report is received (third time the retiree’s name and check are reported), the outstanding checks will be stopped and credited to the Trust. The next month’s installment payment will be addressed to the FCERA office to be kept secure until the member contact’s FCERA to claim it. Upon confirmation of retiree’s mailing address, the remaining checks that were credited to the Trust will be reissued to the member.

DEFINITIONS

Installment Payment – Recurring monthly retirement benefit check for retirees and beneficiaries of retirees (final days).

Lump Sum Payment – One-time payment typically issued to members who have separated from the County of Fresno, Clovis Veteran’s Memorial District, Fresno Madera Area Agency on Aging or Fresno Mosquito and Vector Control District. Payment is in the form of a direct distribution or rollover or a combination of the two.

G:Shared\Retirmnt\ACCT\Procedure\Outstanding Installment and Lump Sum Benefit Check Notification.doc