Accurate participant and policyholder data is crucial – bad data is expensive. Having accurate data allows you to connect with participants and policyholders consistently and efficiently, effectively communicate with the population, and build a better relationship. Selecting the right locate service provider can be difficult – how do you know which service is a fit? A good locator service may be more cost effective to use versus doing all the efforts in-house. Here’s a few ways to tell if the locator service you are using is effective:
Additional independent data sources are used – not just the typical credit reporting agencies, commercial databases and internet searches.
Accurate data leads to better outcomes. Ask your locator service provider what data sources they are using. Be specific in looking for in-house data sources that other commercial locator services would not have access to. In-house databases can provide additional data points. Avoid using a locater service that has limited data that leads to limited results or those using only third party data. Data independence is important for the stability of a provider.
Understand what data points specifically the locator service is updating.
Some commercial locator services only update addresses, while others update a variety of data points. Here’s some examples of data locator services may update:
- Name
- Address
- Phone number
- Date of birth
- SSN
- Social media profile link(s)
- Death record
- Beneficiaries
Ask specifically what information is updated, how they find it and how they know if the information is accurate. Ask for examples of other clients who have used their services and what information they were able to update/find.
Confirmed addresses are key.
Unless you have an uncommon occurrence, getting a confirmed address is essential to significantly reduce returned mail. If the locator service is not sending physical mail, the data you are receiving is considered unconfirmed and you can expect to see returned mail. Commercial databases are only good up to a point and addresses need to be confirmed.
Upon project completion, you are given detailed reporting. Not just a file.
It’s not just a matter of if, but when an audit will take place: internal or external. Does your locator service provide you with all the details and date stamps on every effort made to locate a missing participant or policyholder? Are you able to prove you’ve done your due diligence in trying to locate someone?
The service aligns with many of the DOL’s best practices for finding missing participants.
In 2021, the U.S. Department of Labor (DOL) Employee Benefits Security Administration released best practices for pensions plans around locating missing participants. Find a locator service that helps you align closest with the DOL best practices. This will save you significant time and money when an audit occurs.
The service provider makes it easy and has cybersecurity measures in place.
With 1 in 8 moving each year, a locate search should be run frequently on your population. Choose a service provider that is easy to work with and who has documentation of their cybersecurity measures.
Looking for a locator service to find missing participants or policyholders? Please consider The Berwyn Group. Our premier participant/policyholder search solution, CertiSearch, not only aligns with DOL best practices and provides thorough documentation, but it mails address confirmation letters and makes phone calls to confirm if an address is correct. Contact us to learn more about our participant locate services or find it on our webpage here.
