Approximate processing time of the report is seven months. Breakdown follows:
IRS
|
(Preliminary Examination and Forward to SSA)
|
60 Days
|
SSA
|
(Examining and Scanning/Keying)
|
60 Days
|
SSA
|
(Computer Update — Done on a quarterly basis)
|
90 Days
|
The period between a participant's separation from employment and inclusion in SSA's
deferred vested rights pension file could conceivably be as long a two years and two
months. However, a more realistic period would be 15 to 18 months after the close
of the plan year during which the “incident of separation” occurred.
Example:
Employment terminated
|
01/01/08
|
Plan year ends
|
12/31/2008
|
Report due IRS by (210 days)
|
07/28/09
|
IRS handles (60 days)
|
09/28/09
|
Recorded by SSA (150 days)
|
03/10
|
|
Total time lapsed – 26 months
|
Therefore, knowledge of the employment separation date is helpful when designating
when a person should write back for pension information not yet on SSA records. SSA's
experience indicates that the bulk of the reports are received by July and processed
by December of the year subsequent to the end of the plan year in which the “incident
of separation” occurs.
A general guideline is to have the individual write back in 15 to 18 months after
the close of the plan year in which the “incident of separation” occurred. For example,
if the individual leaves employment in 2008, advise him or her to write back in April
2010.
NOTE: Deferred vested benefit rights information is reported to IRS by a pension plan only
after a plan participant separated from employment under the plan. If an individual
has had an “incident of separation,” a report from the plan may be forthcoming. No
pension information would be reported to IRS or recorded by SSA for an individual
with continuous employment under a specific pension plan.