When will the qualified retirement plan accounts receive distribution
payments?
Payments will be mailed in batches beginning in the fall of 2008 and lasting through
mid-year 2009.
How will Qualified Retirement Plan accounts receive distributions?
Payments will be made to the plans, not directly to participants. Plan fiduciaries
will be responsible for working with their plan provider to choose the allocation
method that is appropriate for their plan. Putnam's Distribution Plan proposes four
allocation methods. The Department of Labor has stated in DOL Field Assistance Bulletin 2006-01 that
it will view the use of a methodology provided (but not required) under a distribution
plan as satisfying ERISA's exclusive benefit and prudence requirements under ERISA
Sections 404(a)(1)(A) and (B) with respect to a method for allocating assets to
participants and beneficiaries.
- Plan fiduciaries may allocate the distribution amount pro rata (based
on each plan participant's total account balance) among the accounts of all the
people who are currently participants in the retirement plan, whether or not they
are currently employees.
- Plan fiduciaries may allocate the distribution amount per capita among
the accounts of all people who are currently participants in the retirement plan,
whether or not they are current employees.
- Plan fiduciaries may allocate the distribution amount to the current
and former participants in the retirement plan using an algorithm that Putnam will
make available, described in Section IV.A. of the Distribution Plan. This method
would require calculation of each qualified retirement plan participant's daily
percentage of shares a plan owned in each fund during the distribution period. Administrative
costs may be charged if a plan fiduciary selects this method.
- If none of the above alternatives are administratively feasible, plan
fiduciaries may, to the extent permitted by the plan, use the distribution amount
to pay reasonable expenses of administering the plan.
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Will there be significant administrative costs for allocating distribution
payments to plan participants?
Costs are expected to be minimal depending on the allocation method that is chosen.
However, we will continue to review this issue consistent with the distribution
plans of others in the industry. Administrative costs may be charged if a plan trustee
selects method (3) listed above.
What information do I need to provide to receive a distribution
payment?
Current and former shareholders do not have to provide any information in order
to be eligible to receive a distribution payment. Shareholders who held assets in
the affected funds during part or all of the affected time period may be eligible
to receive a distribution check. It is important to note that the vast majority
of shareholders in the affected funds incurred either no losses, or only minimal
losses, and therefore will not be entitled to receive any payment.
What is the process for shareholders to appeal or dispute the distribution?
Appeals will be accepted only in cases of failure to execute the Distribution Plan
in accordance with its terms for purposes of determining eligibility or mechanical
errors in calculating the payment to a recipient. Investors who seek to make such
an appeal should submit their appeal, in writing, to the appeal arbiter at the following
address:
Putnam Fair Fund Appeals Arbiter
P.O. Box 990126
Boston, MA 02199-0126
Appeals will be accepted within 60 days from the date that the last batch of checks
in the distribution is issued. Please refer to the Related
Documents link on this Web site to obtain a copy of the "Putnam Fair Fund
Appeal Form" or call the Fair Fund Administrator at 1-800-760-5698.
Who do I call if I have a complaint about how my retirement plan
fiduciary is handling the distribution?
The Distribution Plan requires the plan fiduciaries and intermediaries of retirement
plans to distribute the monies received in accordance with their legal, fiduciary,
and contractual obligations and consistent with guidance issued by the Department
of Labor. Concerns about plan fiduciaries and intermediaries of retirement plans
should be directed to the plan fiduciary or intermediary itself, or to the Department
of Labor at its help line, (866) 444-EBSA (3272).
Is my fund on the list of affected funds?
A total of 86 Putnam retail funds were affected by market timing.
A complete list of affected funds (PDF)
is available for download, or by contacting the Fund Administrator, at (800) 760-5698.