Millions of Americans have billions of dollars in lost or forgotten retirement accounts from previous jobs, making it hard to track their full savings. This bill matters because it creates a clear process for companies to move this 'lost' money to state programs, which are designed to find rightful owners. If this bill becomes law, it could help more people recover their hard-earned retirement savings, preventing those funds from sitting unclaimed indefinitely and ensuring that individuals have better access to their full financial picture as they approach retirement.
Currently, without a standardized process, companies face uncertainty about what to do with unclaimed retirement funds, and individuals often don't know where to look for old accounts. This bill aims to solve both problems by creating a national clearinghouse mechanism and database, offering a better chance for people to connect with their lost money and providing clarity for plan managers.
KEY PROVISIONS
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PROVISION 01
The Secretary of Labor must create a regulation that allows pension plan administrators to voluntarily transfer unclaimed retirement money to State unclaimed property programs.
This establishes the legal framework for a standardized process to move forgotten retirement funds, making them easier to track and recover.
PROVISION 02
Before transferring funds of $50 or more, plan administrators must attempt to locate the owner and send a notice explaining the upcoming transfer and how to prevent it.
This provision ensures that individuals are given a chance to claim their money directly before it is moved to a state program, protecting their interests.
PROVISION 03
Once funds are properly transferred, the plan administrator or fiduciary is legally protected from further liability under federal retirement laws.
This provides clarity and certainty for companies managing retirement plans, encouraging them to participate in the new system without fear of ongoing legal challenges.
PROVISION 04
The Secretary of Labor must make information about transferred and claimed distributions available through the national 'Retirement Savings Lost and Found' database.
This creates a centralized resource where individuals can search for their lost retirement savings, significantly increasing their chances of recovery.
PROVISION 05
Plan fiduciaries must periodically report details of transferred and claimed funds to the Secretary of Labor.
This ensures ongoing oversight and keeps the national database accurate and up-to-date, making it a more effective tool for finding lost money.
Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Millions of Americans have billions of dollars in lost or forgotten retirement accounts from previous jobs, making it hard to track their full savings. This bill matters because it creates a clear process for companies to move this 'lost' money to state programs, which are designed to find rightful owners. If this bill becomes law, it could help more people recover their hard-earned retirement savings, preventing those funds from sitting unclaimed indefinitely and ensuring that individuals have better access to their full financial picture as they approach retirement.
Currently, without a standardized process, companies face uncertainty about what to do with unclaimed retirement funds, and individuals often don't know where to look for old accounts. This bill aims to solve both problems by creating a national clearinghouse mechanism and database, offering a better chance for people to connect with their lost money and providing clarity for plan managers.
KEY PROVISIONS
AI-extracted
high
The Secretary of Labor must create a regulation that allows pension plan administrators to voluntarily transfer unclaimed retirement money to State unclaimed property programs.
This establishes the legal framework for a standardized process to move forgotten retirement funds, making them easier to track and recover.
high
Before transferring funds of $50 or more, plan administrators must attempt to locate the owner and send a notice explaining the upcoming transfer and how to prevent it.
This provision ensures that individuals are given a chance to claim their money directly before it is moved to a state program, protecting their interests.
med
Once funds are properly transferred, the plan administrator or fiduciary is legally protected from further liability under federal retirement laws.
This provides clarity and certainty for companies managing retirement plans, encouraging them to participate in the new system without fear of ongoing legal challenges.
high
The Secretary of Labor must make information about transferred and claimed distributions available through the national 'Retirement Savings Lost and Found' database.
This creates a centralized resource where individuals can search for their lost retirement savings, significantly increasing their chances of recovery.
med
Plan fiduciaries must periodically report details of transferred and claimed funds to the Secretary of Labor.
This ensures ongoing oversight and keeps the national database accurate and up-to-date, making it a more effective tool for finding lost money.
Not later than 180 days after the date of enactment
Secretary of Labor to promulgate regulation
Not later than 90 days after the date of enactment
Plan fiduciary to submit first report on transfers
Every 90 days thereafter
Plan fiduciary to submit subsequent reports on transfers
Not later than 24 months after the promulgation of the regulation
Secretary of Labor to submit report to Congress on regulation's effectiveness
GLOSSARY
AI-written
Pension plan
A retirement plan that provides a fixed, regular payment to employees after they retire, often based on their salary and years of service.
Fiduciary
A person or organization legally and ethically bound to act in the best interests of another party, such as a retirement plan participant.
Unclaimed retirement distributions
Retirement money that is due to a participant or beneficiary but has not been claimed or accessed by them, often because they've lost contact with the plan.
State unclaimed property programs
Government programs in each state responsible for collecting and returning lost or abandoned property (like old bank accounts, forgotten utility deposits, or uncashed checks) to its rightful owners.
Promulgate a regulation
The official process by which a government agency creates and issues a new rule or law.
ERISA (Employee Retirement Income Security Act of 1974)
A federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to protect individuals in these plans.
Qualified trust
ACTION TIMELINE
2 EVENTS
SEP 11, 25
Introduced in House
INTROREFERRAL
SEP 11, 25
Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
