California SB1405 modifies the escheatment rules for employee benefit plan distributions.

California SB1405 amends Section 1521 of the Code of Civil Procedure to change the rules for employee benefit plan distributions that escheat to the state. It specifies that distributions will not escheat if the plan has a forfeiture provision or if the administrator declares a forfeiture for a beneficiary who cannot be found after a certain period. It also allows a participant to be relieved from a forfeiture if they claim the distribution. The Controller may enter into agreements to ensure compliance with federal law.

California SB1405 modifies the escheatment rules for employee benefit plan distributions.

California SB1405 amends Section 1521 of the Code of Civil Procedure to change the rules for employee benefit plan distributions that escheat to the state. It specifies that distributions will not escheat if the plan has a forfeiture provision or if the administrator declares a forfeiture for a beneficiary who cannot be found after a certain period. It also allows a participant to be relieved from a forfeiture if they claim the distribution. The Controller may enter into agreements to ensure compliance with federal law.