Many workers lose track of their retirement savings after changing jobs or due to changes in their employers. This can lead to missed benefits and a smaller nest egg in retirement. However, as mandated by Secure 2.0, a new initiative by the U.S. Department of Labor (DOL) aims to reunite workers with their "lost" retirement savings.
What is the Retirement Savings Lost and Found?
Many workers lose track of their retirement plans after changing jobs or due to incomplete records, a former employer going out of business, or when companies merge. This leaves them unaware of the benefits they may be entitled to.
Additionally, retirement plans spend time and money trying to locate missing participants and risk fiduciary liability if they do not sufficiently search for them. Meanwhile, EBSA conducts extensive investigations into the circumstances surrounding missing participants. The Lost and Found is being established to address all these issues.
The Lost and Found is an online search tool established by the DOL as mandated by Section 303 of the SECURE 2.0 Act. It aims to reunite workers and beneficiaries with their unclaimed retirement savings from job-based plans, such as pensions and 401(k)s. The tool is being developed to address the issue of "missing participants" – people who are owed benefits from their old retirement plans but haven't been located by the plan administrator.
What information is DOL seeking?
The DOL is currently collecting voluntarily provided information from retirement plan administrators (e.g., via their recordkeepers) to populate the Lost and Found database. This initial phase involves voluntary submissions that include basic details like name and Social Security number for participants who:
Left their job (separated from service)
Have an unclaimed benefit
Are aged 65 or older
Once launched, the database will allow individuals to search for their missing benefits using a secure login system.
EBSA encourages retirement plan administrators, recordkeepers, and other service providers to voluntarily participate in this initiative. The Department's official announcement, linked below, provides details on how to submit information.
The Department significantly narrowed the scope of the final information collection request in response to public comments received on the April 2024 proposed ICR and the revised proposed ICR that was republished in September 2024. Generally speaking, this final information collection request is limited to the current information for the plan and the name and social security number of any participant who separated from service, is owed a benefit, and is 65 or older. The portal allows recordkeepers to file on behalf of multiple plans simultaneously.
Plan recordkeepers and third-party administrators are also requested to promote the Lost and Found to both plans and participants, collaborate with their plan clients to secure authorization, and submit the requested data.
What should plan administrator do?
There is no legal requirement to provide this information. Plan administrators will need to decide whether to provide the information requested by the DOL and what is best for plan participants and beneficiaries (including any cyber or privacy concerns raised by this transfer of information). Whether a recordkeeper or other service provider has the authority to voluntarily provide the information will be governed by the relevant service agreement, so that should be reviewed in this regard as well.
When will it be available?
The Lost and Found initiative began gathering data on November 18, 2024, and aims to launch by December 29, 2024. EBSA will collaborate with plan administrators, recordkeepers, and others who voluntarily provide information to fill the database prior to its public launch.
How can Boutwell Fay help?
Boutwell Fay can offer guidance on navigating the decision to participate in this voluntary undertaking. If you have any questions about the request for information or issues related to missing participants, contact a Boutwell Fay attorney at attorneys@boutwellfay.com.
Additional resources:
Full Announcement: [Link to US Department of Labor announcement]
Fact Sheet on Information Collection Request: [Link to Fact Sheet]
Retirement Savings Lost & Found Database Intake Portal: [Link to Portal]
Upload Template and Instructions: [Link to Template]
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