Retirement Savings Lost and Found Act of 2021

II 117TH CONGRESS 1ST SESSION S. 1730 To increase portability of and access to retirement savings, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 20, 2021 Ms. WARREN (for herself and Mr. DAINES) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To increase portability of and access to retirement savings, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Retirement Savings 4 Lost and Found Act of 2021’’. 5 SEC. 2. RETIREMENT SAVINGS LOST AND FOUND. 6 (a) RETIREMENT SAVINGS LOST AND FOUND.— 7 (1) ESTABLISHMENT.— 8 (A) IN GENERAL.—Not later than 3 years 9 after the date of the enactment of this Act, the 10 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1730 IS Secretary of Labor, the Secretary of the Treas- 1 ury, and the Secretary of Commerce, in co- 2 operation, shall establish an online searchable 3 database (to be managed by the Pension Ben- 4 efit Guaranty Corporation in accordance with 5 section 4051 of the Employee Retirement In- 6 come Security Act of 1974) to be known as the 7 ‘‘Retirement Savings Lost and Found’’. The 8 Retirement Savings Lost and Found shall— 9 (i) allow an individual to search for 10 information that enables the individual to 11 locate the plan administrator of any plans 12 with respect to which the individual is or 13 was a participant or beneficiary, and to 14 provide contact information for the plan 15 administrator of any plan described in sub- 16 paragraph (B); 17 (ii) allow the corporation to assist 18 such an individual in locating any plan of 19 the individual; and 20 (iii) allow the corporation to make any 21 necessary changes to contact information 22 on record for the plan administrator based 23 on any changes to the plan due to merger 24 or consolidation of the plan with any other 25 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1730 IS plan, division of the plan into two or more 1 plans, bankruptcy, termination, change in 2 name of the plan, change in name or ad- 3 dress of the plan administrator, or other 4 causes. 5 The Retirement Savings Lost and Found estab- 6 lished under this subparagraph shall include in- 7 formation reported under section 4051 of the 8 Employee Retirement Income Security Act of 9 1974 and other relevant information obtained 10 by the Pension Benefit Guaranty Corporation. 11 (B) PLANS DESCRIBED.—A plan described 12 in this subparagraph is a plan to which the 13 vesting standards of section 203 of part 2 of 14 subtitle B of title I of the Employee Retirement 15 Income Security Act of 1974 apply. 16 (2) ADMINISTRATION.—The Retirement Sav- 17 ings Lost and Found established under paragraph 18 (1) shall provide individuals described in paragraph 19 (1)(A) only with the ability to view contact informa- 20 tion for the plan administrator of any plan with re- 21 spect to which the individual is or was a participant 22 or beneficiary, sufficient to allow the individual to lo- 23 cate the individual’s plan in order to recover any 24 benefit owing to the individual under the plan. 25 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1730 IS (3) SAFEGUARDING PARTICIPANT PRIVACY AND 1 SECURITY.—In establishing the Retirement Savings 2 Lost and Found under paragraph (1), the Pension 3 Benefit Guaranty Corporation, in consultation with 4 the Secretary of Labor, the Secretary of the Treas- 5 ury, and the Secretary of Commerce, shall take all 6 necessary and proper precautions to ensure that in- 7 dividuals’ plan information maintained by the Re- 8 tirement Savings Lost and Found is protected and 9 that persons other than the individual cannot fraud- 10 ulently claim the benefits to which any individual is 11 entitled, and to allow any individual to opt out of in- 12 clusion in the Retirement Savings Lost and Found 13 at the election of the individual. 14 (b) OFFICE OF THE RETIREMENT SAVINGS LOST 15 AND FOUND.— 16 (1) IN GENERAL.—Subtitle C of title IV of the 17 Employee Retirement Income Security Act of 1974 18 (29 U.S.C. 1341 et seq.) is amended by adding at 19 the end the following: 20 ‘‘SEC. 4051. OFFICE OF THE RETIREMENT SAVINGS LOST 21 AND FOUND. 22 ‘‘(a) ESTABLISHMENT; RESPONSIBILITIES OF OF- 23 FICE.— 24 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 5 •S 1730 IS ‘‘(1) IN GENERAL.—Not later than 2 years 1 after the date of the enactment of this section, the 2 Secretary of Labor, the Secretary of the Treasury, 3 and the Secretary of Commerce shall establish with- 4 in the corporation an Office of the Retirement Sav- 5 ings Lost and Found (in this section referred to as 6 the ‘Office’). 7 ‘‘(2) RESPONSIBILITIES OF OFFICE.— 8 ‘‘(A) IN GENERAL.—The Office shall— 9 ‘‘(i) carry out subsection (b) of this 10 section; 11 ‘‘(ii) maintain the Retirement Savings 12 Lost and Found established under section 13 2(a) of the Retirement Savings Lost and 14 Found Act of 2021; and 15 ‘‘(iii) perform an annual audit of plan 16 information contained in the Retirement 17 Savings Lost and Found and ensure that 18 such information is current and accurate. 19 ‘‘(B) OPTION TO CONTRACT.— 20 ‘‘(i) IN GENERAL.—Not later than 2 21 years after the date of enactment of this 22 section, the corporation shall conduct an 23 analysis of the cost effectiveness of con- 24 tracting with a third party to carry out the 25 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 6 •S 1730 IS responsibilities under subparagraph (A)(iii) 1 and, upon a determination that such con- 2 tracting would be more cost effective than 3 carrying out such responsibilities within 4 the Office, the corporation may enter into 5 such contracts as merited by such analysis. 6 ‘‘(ii) REPORT.—The corporation shall 7 report on the results of the analysis under 8 clause (i) to the Committees on Finance 9 and Health, Education, Labor, and Pen- 10 sions of the Senate and the Committees on 11 Ways and Means and Education and 12 Labor of the House of Representatives. 13 ‘‘(b) CERTAIN NON-RESPONSIVE PARTICIPANTS EN- 14 TITLED TO SMALL BENEFITS.— 15 ‘‘(1) GENERAL RULE.— 16 ‘‘(A) TRANSFER TO THE OFFICE OF THE 17 RETIREMENT SAVINGS LOST AND FOUND.—The 18 administrator of a plan that is not terminated 19 and to which section 401(a)(31)(B) of the In- 20 ternal Revenue Code of 1986 applies shall 21 transfer to the Office the amount required to be 22 transferred under section 401(a)(31)(B)(iv) of 23 such Code for a non-responsive participant. 24 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 7 •S 1730 IS ‘‘(B) INFORMATION AND PAYMENT TO THE 1 OFFICE.—Upon making a transfer under sub- 2 paragraph (A), the plan administrator shall 3 provide such information and certifications as 4 the Office shall specify, including with respect 5 to the transferred amount and the non-respon- 6 sive participant. 7 ‘‘(C) INFORMATION REQUIREMENTS AFTER 8 TRANSFER.—In the event that, after a transfer 9 is made under subparagraph (A), the relevant 10 non-responsive participant contacts the plan ad- 11 ministrator or the plan administrator discovers 12 information that may assist the Office in locat- 13 ing the non-responsive participant, the plan ad- 14 ministrator shall notify and provide such infor- 15 mation as the Office shall specify to the Office. 16 ‘‘(D) SEARCH AND PAYMENT BY THE OF- 17 FICE FOLLOWING TRANSFER.—The Office shall 18 periodically, and upon receiving information de- 19 scribed in subparagraph (C), conduct a search 20 for the non-responsive participant for whom the 21 Office has received a transfer under subpara- 22 graph (A). Upon location of a non-responsive 23 participant who claims benefits, the Office shall 24 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 8 •S 1730 IS make a single payment to the non-responsive 1 participant in an amount equal to the sum of— 2 ‘‘(i) the amount transferred to the Of- 3 fice under subparagraph (A) for such par- 4 ticipant; and 5 ‘‘(ii) the return on the investment at- 6 tributable to such amount under section 7 4005(j)(3). 8 ‘‘(2) DEFINITION.—For purposes of this sub- 9 section, the term ‘non-responsive participant’ means 10 a participant or beneficiary of a plan described in 11 paragraph (1)(A)— 12 ‘‘(A) who is entitled to a benefit subject to 13 a mandatory transfer under section 14 401(a)(31)(B)(iii) of the Internal Revenue Code 15 of 1986; and 16 ‘‘(B) for whom the plan has satisfied the 17 conditions in section 401(a)(31)(B)(iv) of such 18 Code. 19 ‘‘(3) REGULATORY AUTHORITY.—The Office 20 shall prescribe such regulations as are necessary to 21 carry out the purposes of this section, including 22 rules relating to the amount payable to the Office 23 and the amount to be paid by the Office. 24 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 9 •S 1730 IS ‘‘(c) INFORMATION COLLECTION.—Within such pe- 1 riod after the end of a plan year as the Office may by 2 regulations prescribe, the administrator of a plan to which 3 the vesting standards of section 203 apply shall submit 4 the following information, and such other information as 5 the corporation may require, to the corporation in such 6 form as the corporation may require: 7 ‘‘(1) The information described in paragraphs 8 (1) through (4) of section 6057(b) of the Internal 9 Revenue Code of 1986. 10 ‘‘(2) The information described in subpara- 11 graphs (A), (B), (E), and (F) of section 6057(a)(2) 12 of the Internal Revenue Code of 1986. 13 ‘‘(d) EFFECTIVE DATE.—The requirements of sub- 14 sections (b) and (c) shall apply with respect to plan years 15 beginning after the second December 31 occurring after 16 the date of the enactment of this section. 17 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 18 are authorized to be appropriated such sums as may be 19 necessary to carry out this section.’’. 20 (2) ESTABLISHMENT OF FUND FOR TRANS- 21 FERRED ASSETS.—Section 4005 of the Employee 22 Retirement Income Security Act of 1974 (29 U.S.C. 23 1305) is amended by adding at the end the fol- 24 lowing: 25 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 10 •S 1730 IS ‘‘(j)(1) A ninth fund shall be established for the pay- 1 ment of benefits under section 4051(b)(1)(D). 2 ‘‘(2) Such fund shall be credited with the appro- 3 priate— 4 ‘‘(A) amounts transferred to the Office of the 5 Retirement Savings Lost and Found under section 6 4051(b)(1)(A); and 7 ‘‘(B) earnings on investments of the fund or on 8 assets credited to the fund. 9 ‘‘(3) Whenever the corporation determines that the 10 moneys of any fund are in excess of current needs, it may 11 request the investment of such amounts as it determines 12 advisable by the Secretary of the Treasury in obligations 13 issued or guaranteed by the United States.’’. 14 (3) CONFORMING AMENDMENT.—The table of 15 contents for the Employee Retirement Income Secu- 16 rity Act of 1974 (29 U.S.C. 1001 et seq.) is amend- 17 ed by inserting after the matter relating to section 18 4050 the following: 19 ‘‘Sec. 4051. Certain non-responsive participants entitled to small benefits.’’. (c) MANDATORY TRANSFERS OF ROLLOVER DIS- 20 TRIBUTIONS.— 21 (1) INVESTMENT OPTIONS.— 22 (A) IN GENERAL.—Subparagraph (B) of 23 section 404(c)(3) of the Employee Retirement 24 Income Security Act of 1974 (29 U.S.C. 25 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 11 •S 1730 IS 1104(c)(3)) is amended by striking the period 1 at the end and inserting ‘‘, and, to the extent 2 the Secretary provides in guidance or regula- 3 tions issued after the enactment of the Retire- 4 ment Savings Lost and Found Act of 2021, is 5 made to— 6 ‘‘(i) a target date or life cycle fund 7 held under such account; 8 ‘‘(ii) as described in section 9 2550.404a–2 of title 29, Code of Federal 10 Regulations, an investment product held 11 under such account designed to preserve 12 principal and provide a reasonable rate of 13 return; 14 ‘‘(iii) the Office of the Retirement 15 Savings Lost and Found in accordance 16 with section 401(a)(31)(B)(iv) of the In- 17 ternal Revenue Code of 1986 and section 18 2(c)(2)(A)(ii) of the Retirement Savings 19 Lost and Found Act of 2021; or 20 ‘‘(iv) such other option as the Sec- 21 retary may so provide.’’. 22 (B) REGULATIONS.—Not later than 270 23 days after the date of the enactment of this 24 Act, the Secretary of Labor shall promulgate 25 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L0C42PROD with BILLS 12 •S 1730 IS regulations identifying the target date or life 1 cycle funds, or specifying the characteristics of 2 such a fund, that will be deemed to meet the re- 3 quirements of section 404(c)(3)(B)(i) of the 4 Employee Retirement Income Security Act of 5 1974 (29 U.S.C. 1104(c)(3)(B)), as amended 6 by subparagraph (A). 7 (2) EXPANSION OF CAP; AUTHORITY TO TRANS- 8 FER LESSER AMOUNTS.— 9 (A) CAP.—Sections 401(a)(31)(B)(ii) and 10 411(a)(11)(A) of the Internal Revenue Code of 11 1986 and section 203(e)(1) of the Employee 12 Retirement Income Security Act of 1974 are 13 each amended by striking ‘‘$5,000’’ and insert- 14 ing ‘‘$6,000’’. 15 (B) DISTRIBUTION OF LARGER AMOUNTS 16 TO INDIVIDUAL RETIREMENT PLANS ONLY.— 17 Section 401(a)(31)(B)(i) of such Code is 18 amended by adding at the end the following: 19 ‘‘The Office of the Retirement Savings Lost 20 and Found established by section 2 of the Re- 21 tirement Savings Lost and Found Act of 2021 22 shall not be treated as a trustee or issuer which 23 is eligible to receive such distributions.’’. 24 VerDate Sep 11 2014 03:32 Jun 03, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1730.IS S1730 kjohnson on DSK79L [Text truncated for display. 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