Volume: 19 Issue: 7
In this Issue:
The Multi-Million-Dollar Disappearing Act: Why Pension Funds Are Losing Track of Their Members… What Can We Learn from Them?
Join Our Own Steve Falk for an Upcoming Fundraising Webinar
Canada Post hosts panelist on “Rethinking Donor Engagement”
The Multi-Million-Dollar Disappearing Act: Why Pension Funds Are Losing Track of Their Members…What Can We Learn from Them?

A series of short articles about who and why organizations use Flagship Software Ltd.’s address correction, auto-completion, change of address, de-duplication, postal sortation software, HWS, Developer Components and APIs.
I’ll admit, I’ve always been fascinated by what happens when people make big life transitions.
When someone changes jobs, sells a house, or finally hangs up their boots to retire, life moves fast. Boxes get packed. Utility bills are getting forwarded. New routines take over.
And you know what usually gets forgotten in the shuffle?
That pension fund account they contributed to eight years ago at a previous employer.
The member isn’t trying to disappear. They simply didn’t update their profile on a portal they haven’t logged into since 2019.
The Multi-Million-Dollar “Ghost Member” Problem
If you manage or administer a pension fund today, you already know the scale of this headache.
Across North America, billions of dollars sit in “unclaimed” or dormant pension accounts. Hundreds of thousands of plan members have effectively vanished from plan records. Some were simply moved, others were deceased.
Here’s why that matters:
The Regulatory Squeeze – Fiduciary compliance rules are tightening. Regulators don’t accept “we sent an email and it bounced” as a diligent search.
- Escalating Search Costs – Tracking down a lost member through manual skip-tracing or third-party investigators can cost anywhere from $75 to $200 per record.
- The Communication Black Hole – Annual statements, critical beneficiary updates, and mandatory payout notices are returned to sender or vanish into the spam folder
When a pension fund loses contact with a deferred member, administrative costs quietly balloon—and plan governance takes a direct hit.
The Digital Trap: Portals Are Not a Silver Bullet
The conventional wisdom over the last decade was simple: “Just build a member self-service portal and send email blasts.”
Don’t get me wrong – I love digital tools. But assuming your members will regularly log into a self-service portal is like expecting someone to check an old apartment’s mailbox five years after moving out.
The reality is that pure digital outreach creates a false sense of security.
When an employee leaves a plan sponsor, their corporate email gets deactivated. If the primary contact on file is john.smith@oldcompany.com, that annual statement is gone into the digital ether.
And an automated portal reminder? It’s the equivalent of a robot voice phone call: efficient on paper but completely ignored in practice.
Let’s Look at Real Math
Let’s break down what contact data decay looks like inside an average database:
Address Drift: Roughly 12% to 15% of the population moves every single year.
- Email Churn: Marketing and administrative databases lose roughly 20% to 25% of valid email contacts annually due to job changes and abandoned inboxes.
If you have a database of 50,000 deferred or active members, you could lose reliable contact with 6,000 to 7,500 people every 12 months.
Wait for it!
If you wait five years to run a member audit, over half of your unverified contact records could be obsolete.
When you finally need to issue a mandatory distribution or annual statement, you aren’t running an administrative process – you’re running a missing-persons bureau.
The Fix: A Smarter, Hybrid Data Toolkit
Solving this isn’t about spending a fortune on private investigators. It’s about building a proactive, integrated data hygiene routine.
Here is the three-step framework every plan administrator should put in place:
Step 1: Automated Address Hygiene (NCOA and deceased lists) – Before any major mailout or annual reporting cycle, run your member data against National Change of Address (NCOA) registries. Cleaning your list upstream stops returned mail before postage is spent. A changed address without a forwarding address may indicate a deceased individual and there are “enhanced” deceased list matching processes available.
Step 2: Triggered Multi-Channel Outreach – When an email bounces or a digital statement sits unopened for 30 days, trigger an automated, personalized physical letter or postcard. A physical mail piece delivered to a home address carries a near-100% open rate and demands immediate attention.
Step 3: The “Frictionless Response” Call-to-Action – Don’t force members through a complex 6-step login process just to verify their contact details. Use a personalized, dynamic QR code on their physical letter that takes them directly to a secure, pre-populated verification page.
Reconnecting Before the Trail Goes Cold
Re-engaging lost and deceased pension members doesn’t require a radical overhaul of your entire administrative system.
It simply requires meeting members where they live -combining first-party data hygiene with clear, tangible communication that can’t be deleted with a single swipe.
Give it a try.
Success to you,
Steve Falk
Director of Strategic Operations, Flagship Software Ltd.

Join Our Own Steve Falk for an Upcoming Fundraising Webinar
We’re pleased to share that our colleague, Steve Falk, will be speaking in an upcoming webinar focused on the evolving landscape of not-for-profit fundraising and donor engagement.
In this session, Steve and other direct mail fundraising experts will discuss innovative strategies to help organizations strengthen relationships with existing donors while reaching new audiences. Attendees will gain practical insights into:
- What’s working, and what’s not, in not-for-profit marketing today
- How direct mail and digital channels are coming together to create more connected and personalized donor experiences
- How data-driven strategies can help maximize the impact of every fundraising dollar
Whether you’re looking to enhance donor engagement, improve campaign performance, or stay ahead of emerging fundraising trends, this webinar offers valuable perspectives and actionable ideas.
We hope you’ll join Steve and the panel for this informative discussion. 👉 Register here: Join the Webinar


