Revised Pennsylvania Escheatment Laws
Revised Pennsylvania Escheatment Laws
Is your Bank ready for accelerated filing of unclaimed property for 2014? The PA escheatment rules were amended on July 10, 2014 to shorten the period of time from 5 years to 3 years after which certain types of abandoned and unclaimed property must be transferred to the state. For the 2014 reporting in April 2015, the time period was shortened to 3 years for the following property types:
- Savings or time deposits in a financial institution or shares in a savings association or savings and loan or building and loan association
- Outstanding checks or drafts
- Contents removed from a safe deposit box or other safekeeping repository
- Monies due from an insurer under an annuity contract, life insurance policy, or any other contract
- Utility advances, tolls, deposits, or collateral security
- Gift certificates or gift cards (if no redemption period is specified)
- Stock certificates or rights to participate in a business association
- Dividends, profits, distributions, payments, of principal owed by business associations
- Principal or interest due on business associations’ bonds or debentures
- Property held in fiduciary capacity for the benefit of another
- Property, including restitution, held for owners by courts, public corporations, public authorities, or instrumentalities of the U.S., states, or political subdivisions
- Individual retirement accounts, retirement plans for self-employed individuals, or similar accounts not subject to a mandatory distribution requirement is presumed abandoned and unclaimed three (3) years after the owner is age 70½ or 3 years after he or she has indicated an interest in the property or other property held by the holder.
As the end of the year approaches, don’t wait until the last minute to start scrubbing your holdings as there will be an increased volume of escheat eligible property. Make sure your institution has updated procedures and targeted training in place for handling the changes to the state law. The state treasurer may issue fines and if the records of the bank are not sufficient, the State Treasurer may reasonably estimate the amount required to be paid by the holder. The new law was enacted in part to generate additional revenue to balance the general fund budget and therefore, it is reasonable to believe examinations may occur to ensure the records are being maintained properly.
For additional information contact the author Lyle Loeb at lloeb@fosaudit.com.
Lyle L. Loeb | Revised Pennsylvania Escheatment Laws