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

California SB1405 amends Section 1521 of the Code of Civil Procedure to prevent employee benefit plan distributions from escheating to the state if certain conditions are met. Specifically, distributions will not escheat if the plan includes a forfeiture provision or authorizes the administrator to declare a forfeiture for beneficiaries who cannot be located. The Controller may still enter distributions into the state if the owner has not accepted, corresponded, or indicated interest within three years.

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

California SB1405 amends Section 1521 of the Code of Civil Procedure to prevent employee benefit plan distributions from escheating to the state if certain conditions are met. Specifically, distributions will not escheat if the plan includes a forfeiture provision or authorizes the administrator to declare a forfeiture for beneficiaries who cannot be located. The Controller may still enter distributions into the state if the owner has not accepted, corresponded, or indicated interest within three years.