Certified Plan Sponsor Professional (CPSP) Practice Exam

Plan fiduciaries indeed have a fiduciary obligation to locate missing participants for benefit distribution. This responsibility is grounded in the broader duty of fiduciaries to act in the best interest of plan participants and beneficiaries. Fiduciaries must ensure that participants receive their vested benefits in a timely manner, which includes actively attempting to contact participants whose whereabouts are unknown. The obligation to locate missing participants stems from regulations and guidance from agencies such as the Department of Labor, which emphasize the importance of safeguarding participants' benefits. By making reasonable efforts to find them, fiduciaries can help ensure that participants receive the retirement benefits they are entitled to, thus fulfilling their duties under the Employee Retirement Income Security Act (ERISA). This duty is particularly important because failing to locate participants can lead to unclaimed benefits, which not only affects the participants' financial well-being but can also create administrative burdens for the plan. The emphasis on a fiduciary duty reflects a commitment to prudent management and the responsibility of plan sponsors to take necessary actions to manage the plan effectively.