Disbursement Rejections due to Name/SSN Mismatch
The custodian Charles Schwab verifies a participant's name and SSN combination on file with BlueStar against what is on file with the Social Security Administration before they will issue a check. If the participant's name on file with us does not match what is on file with the SSA, the disbursement will be rejected and we will require additional information before we can request again to issue the payment.
Recordkeeping will notify us of this with an email similar to the below message:
When this notice is received, we should immediately make note on PC to state the distribution has been rejected due to name/SSN mismatch and has NOT traded and will not export until sufficient documentation is received. Once you have noted this, we should reach out to the participant using the canned response titled: Name/SSN Mismatch w/ Spanish Translation. This canned response contains a Spanish translated version of the message as well as a blank W-9 form. Please note that you will need to update the participant's name in the bolded, red fields in the message.
Please note the PC record with the ticket number where you have reached out to the participant as well.
Once we receive sufficient documentation (examples of what would be sufficient and different scenarios below), please reply all to the email from recordkeeping and tag Derek to request approval to issue the payment under the documented name. Once Derek has approved, RK will proceed in resubmitting the request for disbursement. If there are no further issues, the payment should export but if there is another rejection, they will follow up with transactions so that we can go back to the participant to request additional info as needed.
Please ensure to follow up with the participant daily to request documents. On the 4th business day after our initial contact, send the participant a final follow up and advise the request will be cancelled if we do not hear back by the EOD of the following business day. At that point, if we have not received any response by the 5th business day, we should advise RK (again ensuring to reply all) that we have not heard back and the request should be cancelled. The participant will need to resubmit their request at a later time and would then likely still be required to send in needed documentation unless they have made any recent updates to their name with the Social Security Admin.
Examples
Ex. 1: Tierra Cross's request was rejected. When we requested proof of name change, she provided her marriage certificate showing her maiden name Henderson and new name of Cross. However, she provided a SS Card that still shows the name Tierra Henderson. In this case, the participant has not yet legally updated her name with the Social Security Administration. We would need to ask the participant if they approve issuing the payment under her maiden name Henderson. If she approves this, we would reply all to RK's email advising them that the documentation the participant has provided is uploaded to PC and ask Derek for approval to issue the payment under the participant's maiden name since she has not updated it legally with the SSA.
Ex. 2: John Smith's request was rejected. When requested proof of name change, John insisted his name on file with the SSA was correct and provided his SS Card showing this name and a signed W-9 attesting to John Smith being his legal name as well. This is sufficient to move forward. This was sent to RK and approval was provided so that Schwab could issue the disbursement.