MCO Information Guide
| ABC SAMPLE PLAN | D34730 |
Mandatory Cashout (MCO) Questions and Answers.
What is this service?
AUL is providing a service on eSponsor to allow your plan to effectively administer the mandatory cashout provision in your plan.
How does this work?
AUL provides a list of participants that are eligible for the mandatory cashout. This list is based upon the participant status information we have for your plan. You have the opportunity to review the list and approve the entire list or each participant on the listing. Once approved, the mandatory cashout process begins.
How do I get started?
Go to eSponsor and use the MCO Center under the Participant Data Menu and follow the step by step instructions.
What are the Automated and the Upon Approval methods?
Automated method: AUL provides a list of participants eligible for the MCO. Participants will be processed unless the Plan Sponsor removes the approval.
Upon Approval method: AUL provides a list and we will only process the participant(s) that you approve to be processed.
How is the MCO report generated?
For this process to be effective, AUL needs to have updated participant status information from you. AUL will review your plan based upon the participant information you provide and include participants who have terminated and are eligible for the MCO.
Does the AUL MCO IRA remain the product for the MCO balances of $1000 to $5000?
Yes, that remains the product that we offer.
How will I know when a list is available?
AUL will send an email notification to you based upon your selected notification frequency. You can select your notification frequency using the MCO Update Notification tab.
What is the ineligible report?
Participants will appear on the ineligible report if they are eligible for MCO but we do not have a complete address. You have the opportunity to update the address at this time by selecting the participant and updating their address.
If the vesting percent that appears is incorrect, can I change it?
Yes, you may update the vesting percent that will apply. During the steps in the MCO Eligible Participant Screen, you will see the vesting percent that is calculated. You may change the percent if you wish. The vesting schedule for each source can be displayed by hovering over the schedule for each source. Keep in mind this may also change the status of the MCO if the vested balance is increased over your plans MCO limit.
Do I need to notify you when I have approved?
You do not need to notify AUL. AUL will automatically review for your approval and begin processing.
What happens if I selected the Upon Approval method and I do not approve?
The MCOs will not be processed until you approve
May I see a status of the process?
Yes, you may go to the MCO Center report on eSponsor to review reports displaying the status of the MCO’s.
Is a letter being sent to allow the participant to select their payout or rollover option?
Yes, AUL’s communication with the participant remains the same. We will send a letter to the participant asking for their selection on a payout method, lump sum or rollover.
What if circumstances occur that I need to change my approval?
You may change your approval on the MCO Eligible Participants screen for the entire list or for certain individuals during the process. However, once the MCO is processed, you will need to contact your Plan Services Consultant for reinstating the participant’s account.
Do I need to approve each time or can you just process the MCOs?
There are two methods being offered, Automated and Upon Approval. Automated will provide a list and automatically process without approval. Upon Approval will require you to review the listing and approve the MCO process list. Your selection is given on the Mandatory Cashout and IRA Rollover Agreement.
If you have a question that does not appear here, please contact your Plan Consultant and they will assist you.