Retirement Savings Lost and Found Act

I 116TH CONGRESS 2D SESSION H. R. 7439 To establish the Retirement Savings Lost and Found, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 1, 2020 Ms. BONAMICI (for herself and Mr. BANKS) introduced the following bill; which was referred to the Committee on Ways and Means, and in addi- tion to the Committee on Education and Labor, for a period to be subse- quently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To establish the Retirement Savings Lost and Found, 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’’. 5 SEC. 2. RETIREMENT SAVINGS LOST AND FOUND. 6 (a) RETIREMENT SAVINGS LOST AND FOUND.— 7 (1) ESTABLISHMENT.— 8 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 7439 IH (A) IN GENERAL.—Not later than 2 years 1 after the date of the enactment of this Act, the 2 Commissioner of Social Security and the Sec- 3 retary of the Treasury in cooperation shall es- 4 tablish an online mechanism to be known as the 5 ‘‘Retirement Savings Lost and Found’’, to be 6 managed by the Director of the Retirement 7 Savings Lost and Found established under sub- 8 section (c) of this section— 9 (i) to 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 a 13 participant or beneficiary, and to provide 14 contact information for the plan adminis- 15 trator of any plan described in subpara- 16 graph (B) with respect to which the indi- 17 vidual may be entitled to a benefit; 18 (ii) to allow such Director to assist 19 such an individual in locating any plan of 20 the individual; and 21 (iii) to allow such Director to make 22 any necessary changes to contact informa- 23 tion on record for the plan administrator 24 based on any changes to the plan due to 25 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 7439 IH merger or consolidation of the plan with 1 any other plan, division of the plan into 2 two or more plans, bankruptcy, termi- 3 nation, change in name of the plan, change 4 in name or address of the plan adminis- 5 trator, or other causes. 6 The Retirement Savings Lost and Found estab- 7 lished under this paragraph shall contain the 8 information obtained by the Commissioner of 9 Social Security regarding deferred vested bene- 10 fits under section 6057 of the Internal Revenue 11 Code of 1986 (including information so ob- 12 tained before the date of the enactment of this 13 Act). Such information shall be retained in the 14 Retirement Savings Lost and Found in per- 15 petuity. 16 (B) PLANS DESCRIBED.—A plan described 17 in this subparagraph is a plan to which the 18 vesting standards of section 203 of part 2 of 19 subtitle B of title I of the Employee Retirement 20 Income Security Act of 1974 apply. 21 (2) ADMINISTRATION.—The Retirement Sav- 22 ings Lost and Found established under paragraph 23 (1) shall provide individuals described in paragraph 24 (1)(A) only with the ability to view contact informa- 25 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 7439 IH tion for the plan administrator of any plan with re- 1 spect to which the individual is a participant or ben- 2 eficiary, sufficient to allow the individual to locate 3 the individual’s plan. 4 (3) CURRENT INFORMATION.— 5 (A) IN GENERAL.—Paragraph (2) of sec- 6 tion 6057(a) of the Internal Revenue Code of 7 1986 is amended— 8 (i) in subparagraph (C)— 9 (I) by striking ‘‘during such plan 10 year’’ in clause (i) and inserting ‘‘dur- 11 ing the plan year immediately pre- 12 ceding such plan year’’; 13 (II) by adding ‘‘and’’ at the end 14 of clause (i); and 15 (III) by striking clause (iii); 16 (ii) by redesignating subparagraph 17 (E) as subparagraph (G); 18 (iii) by striking ‘‘and’’ at the end of 19 subparagraph (D); and 20 (iv) by inserting after subparagraph 21 (D) the following new subparagraphs: 22 ‘‘(E) the name and taxpayer identifying 23 number of each participant or former partici- 24 pant in the plan— 25 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 7439 IH ‘‘(i) who, during any previous plan 1 year, was reported under subparagraph 2 (C), and with respect to whom the benefits 3 described in subparagraph (C)(ii) were 4 fully paid during the plan year, 5 ‘‘(ii) with respect to whom any 6 amount was distributed under section 7 401(a)(31)(B) during the plan year, or 8 ‘‘(iii) with respect to whom a deferred 9 annuity contract was distributed during 10 the plan year, 11 ‘‘(F) in the case of a participant or former 12 participant to whom subparagraph (E) ap- 13 plies— 14 ‘‘(i) in the case of a participant de- 15 scribed in clause (ii) thereof, the name and 16 address of the designated trustee or issuer 17 described in section 401(a)(31)(B)(i) and 18 the account number of the individual re- 19 tirement plan to which the amount was 20 distributed, and 21 ‘‘(ii) in the case of a participant de- 22 scribed in clause (iii) thereof, the name 23 and address of the issuer of such annuity 24 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 7439 IH contract and the contract or certificate 1 number, and’’. 2 (B) RULES RELATING TO DIRECT TRUST- 3 EE-TO-TRUSTEE TRANSFERS.— 4 (i) IN GENERAL.—Paragraph (6) of 5 section 402(e) of such Code is amended— 6 (I) by striking ‘‘TRANSFERS.— 7 Any’’ and inserting ‘‘TRANSFERS.— 8 ‘‘(A) IN GENERAL.—Any’’; and 9 (II) by adding at the end the fol- 10 lowing new subparagraph: 11 ‘‘(B) NOTIFICATION OF TRUSTEE.—In the 12 case of a distribution under section 13 401(a)(31)(B), the plan administrator shall no- 14 tify the designated trustee or issuer described 15 in clause (i) thereof that the transfer is a man- 16 datory distribution required by such section.’’. 17 (ii) PENALTY.—Subsection (i) of sec- 18 tion 6652 of such Code is amended— 19 (I) by striking ‘‘TO RECIPIENTS’’ 20 in the heading and inserting ‘‘OR NO- 21 TIFICATION’’; 22 (II) by striking ‘‘402(f),’’ and in- 23 serting ‘‘402(f) or a notification as re- 24 quired by section 402(e)(6)(B),’’; and 25 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 7439 IH (III) by striking ‘‘such written 1 explanation’’ and inserting ‘‘such writ- 2 ten explanation or notification’’. 3 (iii) REPORTS.—Subsection (i) of sec- 4 tion 408 of such Code is amended— 5 (I) by redesignating subpara- 6 graphs (A) and (B) of paragraph (2) 7 as clauses (i) and (ii), respectively, 8 and by moving such clauses 2 ems to 9 the right; 10 (II) by redesignating paragraphs 11 (1) and (2) as subparagraphs (A) and 12 (B), respectively, and by moving such 13 subparagraphs 2 ems to the right; 14 (III) by striking ‘‘as the Sec- 15 retary prescribes’’ in subparagraph 16 (B)(ii), as so redesignated, and all 17 that follows through ‘‘a simple retire- 18 ment account’’ and inserting ‘‘as the 19 Secretary prescribes. 20 ‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 21 case of a simple retirement account’’; 22 (IV) by striking ‘‘REPORTS.— 23 The trustee of’’ and inserting ‘‘RE- 24 PORTS.— 25 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 7439 IH ‘‘(1) IN GENERAL.—The trustee of’’; 1 (V) by striking ‘‘under paragraph 2 (2)’’ in paragraph (3), as redesignated 3 by clause (iii), and inserting ‘‘under 4 paragraph (1)(B)’’; and 5 (VI) by inserting after paragraph 6 (1)(B)(ii), as redesignated by the pre- 7 ceding clauses, the following new 8 paragraph: 9 ‘‘(2) MANDATORY DISTRIBUTIONS.—In the case 10 of an account, contract, or annuity to which a trans- 11 fer under section 401(a)(31)(B) is made (including 12 a transfer from the individual retirement plan to 13 which the original transfer under such section was 14 made to another individual retirement plan), the re- 15 port required by this subsection for the year of the 16 transfer shall— 17 ‘‘(A) identify such transfer as a mandatory 18 distribution required by such section, 19 ‘‘(B) include the name, address, and tax- 20 payer identifying number of the trustee or 21 issuer of the individual retirement plan to which 22 the amount is transferred, and 23 ‘‘(C) be filed with the Director of the Re- 24 tirement Savings Lost and Found established 25 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 7439 IH under section 2(a)(1) of the Retirement Savings 1 Lost and Found Act as well as with the Sec- 2 retary.’’. 3 (C) NOTIFICATION OF PARTICIPANTS UPON 4 SEPARATION.—Subsection (e) of section 6057 5 of such Code is amended by inserting ‘‘, and a 6 notice of the availability of the Retirement Sav- 7 ings Lost and Found established under section 8 2(a)(1) of the Retirement Savings Lost and 9 Found Act’’ before the period at the end of the 10 second sentence. 11 (D) EFFECTIVE DATE.—The amendments 12 made by this paragraph shall apply to distribu- 13 tions made in, and returns and reports relating 14 to, years beginning after the second December 15 31 occurring after the date of the enactment of 16 this Act. 17 (4) COORDINATION WITH DISTRIBUTION RE- 18 QUIREMENTS, FIDUCIARY DUTIES, ETC.— 19 (A) AMENDMENT OF INTERNAL REVENUE 20 CODE OF 1986.—Paragraph (9) of section 21 401(a) of the Internal Revenue Code of 1986, 22 as amended by the preceding provisions of this 23 Act, is further amended by adding at the end 24 the following new subparagraph: 25 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 7439 IH ‘‘(K) COORDINATION WITH RETIREMENT 1 SAVINGS LOST AND FOUND.— 2 ‘‘(i) IN GENERAL.—With respect to 3 any lost or missing participant of a plan, 4 the plan shall not be treated as failing to 5 satisfy the requirements of this paragraph 6 or any other requirement of this title which 7 cannot be satisfied due to the plan’s inabil- 8 ity to locate the participant. 9 ‘‘(ii) LOST OR MISSING PARTICI- 10 PANT.—For purposes of subclause (i), the 11 term ‘lost or missing participant’ shall be 12 defined in guidance to be issued jointly by 13 the Internal Revenue Service, Department 14 of the Treasury, the Employee Benefits 15 Security Administration, Department of 16 Labor, and the Pension Benefit Guaranty 17 Corporation. Such guidance shall be so 18 issued not later than 1 year after the date 19 of the enactment of this subparagraph.’’. 20 (B) AMENDMENT OF EMPLOYEE RETIRE- 21 MENT INCOME SECURITY ACT OF 1974.— 22 (i) IN GENERAL.—Section 404 of the 23 Employee Retirement Income Security Act 24 of 1974 (29 U.S.C. 1104) is amended by 25 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 11 •HR 7439 IH adding at the end the following new sub- 1 section: 2 ‘‘(e) COORDINATION WITH RETIREMENT SAVINGS 3 LOST AND FOUND.— 4 ‘‘(1) IN GENERAL.—With respect to any lost or 5 missing participant of a plan, a fiduciary of the plan 6 shall not be treated as failing to satisfy any require- 7 ment to search for or attempt to locate, or to pro- 8 vide any document or information to, such indi- 9 vidual, or any other requirement of this title which 10 cannot be satisfied due to the plan’s inability to lo- 11 cate the participant. 12 ‘‘(2) LOST OR MISSING PARTICIPANT.—For 13 purposes of paragraph (1), the term ‘lost or missing 14 participant’ shall be defined in guidance to be issued 15 jointly by the Internal Revenue Service, Department 16 of the Treasury, the Employee Benefits Security Ad- 17 ministration, Department of Labor, and the Pension 18 Benefit Guaranty Corporation. Such guidance shall 19 be so issued not later than 1 year after the date of 20 the enactment of this subsection.’’. 21 (ii) CONFORMING AMENDMENTS.— 22 Section 4050(a)(1) of the Employee Re- 23 tirement Income Security Act of 1974 (29 24 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 12 •HR 7439 IH U.S.C. 1350(a)(1)) is amended in subpara- 1 graph (B)— 2 (I) by striking ‘‘provides’’ and in- 3 serting ‘‘either— 4 ‘‘(i) provides’’; 5 (II) by striking the period at the 6 end and inserting ‘‘; or’’; and 7 (III) by adding at the end the 8 following new clause: 9 ‘‘(ii) satisfies the requirements of sec- 10 tion 6057(a) of the Internal Revenue Code 11 of 1986.’’. 12 (5) REQUIREMENT OF ELECTRONIC FILING.— 13 (A) IN GENERAL.—Paragraph (2) of sec- 14 tion 6011(e) of the Internal Revenue Code of 15 1986 is amended— 16 (i) by redesignating subparagraphs 17 (A) and (B) as clauses (i) and (ii), respec- 18 tively, and by moving such clauses 2 ems 19 to the right; 20 (ii) by striking ‘‘REGULATIONS.—In 21 prescribing’’ and inserting ‘‘REGULA- 22 TIONS.— 23 ‘‘(A) IN GENERAL.—In prescribing’’; and 24 VerDate Sep 11 2014 05:38 Jul 24, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H7439.IH H7439 pbinns on DSKJLVW7X2PROD with BILLS 13 •HR 7439 IH (iii) by adding at the end the fol- 1 lowing new subparagraph: 2 ‘‘(C) EXCEPTIONS.—Notwithstanding sub- 3 paragraph (A), the Secretary shall require re- 4 turns or reports required under— 5 ‘‘(i) sections 6057, 6058, and 6059, 6 and 7 ‘‘(ii) sections 408(i), 6041, and 6047 8 to the extent such return or report relates 9 to the tax treatment of a distribution from 10 a plan, account, contract, or annuity, 11 to be filed on magnetic media, but only with re- 12 spect to persons who are required to file at 13 least 50 returns during the calendar year which 14 includes the first day of the plan year to which 15 such returns or reports relate.’’. 16 (B) EFFECTIVE DATE.—The amendments 17 made by this paragraph shall apply to returns 18 and reports relating to years beginning after 19 the second December 31 occurring after the 20 date of t [Text truncated for display. 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