Retirement Savings Lost and Found Act of 2020

II 116TH CONGRESS 2D SESSION S. 4192 To increase portability of and access to retirement savings, and for other purposes. IN THE SENATE OF THE UNITED STATES JULY 2, 2020 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 2020’’. 5 SEC. 2. RETIREMENT SAVINGS LOST AND FOUND. 6 (a) ESTABLISHMENT.— 7 (1) IN GENERAL.—Not later than 2 years after 8 the date of the enactment of this Act, the Commis- 9 sioner of Social Security and the Secretary of the 10 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 4192 IS Treasury in cooperation shall establish an online 1 mechanism to be known as the ‘‘Retirement Savings 2 Lost and Found’’, to be managed by the Director of 3 the Retirement Savings Lost and Found established 4 under section 4 of this Act— 5 (A) to allow an individual to search for in- 6 formation that enables the individual to locate 7 the plan administrator of any plans with re- 8 spect to which the individual is a participant or 9 beneficiary, and to provide contact information 10 for the plan administrator of any plan described 11 in paragraph (2) with respect to which the indi- 12 vidual may be entitled to a benefit; 13 (B) to allow such Director to assist such 14 an individual in locating any plan of the indi- 15 vidual; and 16 (C) to allow such Director to make any 17 necessary changes to contact information on 18 record for the plan administrator based on any 19 changes to the plan due to merger or consolida- 20 tion of the plan with any other plan, division of 21 the plan into two or more plans, bankruptcy, 22 termination, change in name of the plan, 23 change in name or address of the plan adminis- 24 trator, or other causes. 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 4192 IS The Retirement Savings Lost and Found established 1 under this paragraph shall contain the information 2 obtained by the Commissioner of Social Security re- 3 garding deferred vested benefits under section 6057 4 of the Internal Revenue Code of 1986 (including in- 5 formation so obtained before the date of the enact- 6 ment of this Act). Such information shall be re- 7 tained in the Retirement Savings Lost and Found in 8 perpetuity. 9 (2) PLANS DESCRIBED.—A plan described in 10 this paragraph is a plan to which the vesting stand- 11 ards of section 203 of part 2 of subtitle B of title 12 I of the Employee Retirement Income Security Act 13 of 1974 apply. 14 (b) ADMINISTRATION.—The Retirement Savings Lost 15 and Found established under subsection (a) shall provide 16 individuals described in subsection (a)(1) only with the 17 ability to view contact information for the plan adminis- 18 trator of any plan with respect to which the individual is 19 a participant or beneficiary, sufficient to allow the indi- 20 vidual to locate the individual’s plan. 21 (c) CURRENT INFORMATION.— 22 (1) IN GENERAL.—Paragraph (2) of section 23 6057(a) of the Internal Revenue Code of 1986 is 24 amended— 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 4192 IS (A) in subparagraph (C)— 1 (i) by striking ‘‘during such plan 2 year’’ in clause (i) and inserting ‘‘during 3 the plan year immediately preceding such 4 plan year’’; 5 (ii) by adding ‘‘and’’ at the end of 6 clause (i); and 7 (iii) by striking clause (iii); 8 (B) by redesignating subparagraph (E) as 9 subparagraph (G); 10 (C) by striking ‘‘and’’ at the end of sub- 11 paragraph (D); and 12 (D) by inserting after subparagraph (D) 13 the following new subparagraphs: 14 ‘‘(E) the name and taxpayer identifying 15 number of each participant or former partici- 16 pant in the plan— 17 ‘‘(i) who, during any previous plan 18 year, was reported under subparagraph 19 (C), and with respect to whom the benefits 20 described in subparagraph (C)(ii) were 21 fully paid during the plan year, 22 ‘‘(ii) with respect to whom any 23 amount was distributed under section 24 401(a)(31)(B) during the plan year, or 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 4192 IS ‘‘(iii) with respect to whom a deferred 1 annuity contract was distributed during 2 the plan year, 3 ‘‘(F) in the case of a participant or former 4 participant to whom subparagraph (E) ap- 5 plies— 6 ‘‘(i) in the case of a participant de- 7 scribed in clause (ii) thereof, the name and 8 address of the designated trustee or issuer 9 described in section 401(a)(31)(B)(i) and 10 the account number of the individual re- 11 tirement plan to which the amount was 12 distributed, and 13 ‘‘(ii) in the case of a participant de- 14 scribed in clause (iii) thereof, the name 15 and address of the issuer of such annuity 16 contract and the contract or certificate 17 number, and’’. 18 (2) RULES RELATING TO DIRECT TRUSTEE-TO- 19 TRUSTEE TRANSFERS.— 20 (A) IN GENERAL.—Paragraph (6) of sec- 21 tion 402(e) of such Code is amended— 22 (i) by striking ‘‘TRANSFERS.—Any’’ 23 and inserting ‘‘TRANSFERS.— 24 ‘‘(A) IN GENERAL.—Any’’; and 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 4192 IS (ii) by adding at the end the following 1 new subparagraph: 2 ‘‘(B) NOTIFICATION OF TRUSTEE.—In the 3 case of a distribution under section 4 401(a)(31)(B), the plan administrator shall no- 5 tify the designated trustee or issuer described 6 in clause (i) thereof that the transfer is a man- 7 datory distribution required by such section.’’. 8 (B) PENALTY.—Subsection (i) of section 9 6652 of such Code is amended— 10 (i) by striking ‘‘TO RECIPIENTS’’ in 11 the heading and inserting ‘‘OR NOTIFICA- 12 TION’’; 13 (ii) by striking ‘‘402(f),’’ and insert- 14 ing ‘‘402(f) or a notification as required by 15 section 402(e)(6)(B),’’; and 16 (iii) by striking ‘‘such written expla- 17 nation’’ and inserting ‘‘such written expla- 18 nation or notification’’. 19 (C) REPORTS.—Subsection (i) of section 20 408 of such Code is amended— 21 (i) by redesignating subparagraphs 22 (A) and (B) of paragraph (2) as clauses (i) 23 and (ii), respectively, and by moving such 24 clauses 2 ems to the right; 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 4192 IS (ii) by redesignating paragraphs (1) 1 and (2) as subparagraphs (A) and (B), re- 2 spectively, and by moving such subpara- 3 graphs 2 ems to the right; 4 (iii) by striking ‘‘as the Secretary pre- 5 scribes’’ in subparagraph (B)(ii), as so re- 6 designated, and all that follows through ‘‘a 7 simple retirement account’’ and inserting 8 ‘‘as the Secretary prescribes. 9 ‘‘(3) SIMPLE RETIREMENT ACCOUNTS.—In the 10 case of a simple retirement account’’; 11 (iv) by striking ‘‘REPORTS.—The 12 trustee of’’ and inserting ‘‘REPORTS.— 13 ‘‘(1) IN GENERAL.—The trustee of’’; 14 (v) by striking ‘‘under paragraph (2)’’ 15 in paragraph (3), as redesignated by clause 16 (iii), and inserting ‘‘under paragraph 17 (1)(B)’’; and 18 (vi) by inserting after paragraph 19 (1)(B)(ii), as redesignated by the pre- 20 ceding clauses, the following new para- 21 graph: 22 ‘‘(2) MANDATORY DISTRIBUTIONS.—In the case 23 of an account, contract, or annuity to which a trans- 24 fer under section 401(a)(31)(B) is made (including 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 4192 IS a transfer from the individual retirement plan to 1 which the original transfer under such section was 2 made to another individual retirement plan), the re- 3 port required by this subsection for the year of the 4 transfer shall— 5 ‘‘(A) identify such transfer as a mandatory 6 distribution required by such section, 7 ‘‘(B) include the name, address, and tax- 8 payer identifying number of the trustee or 9 issuer of the individual retirement plan to which 10 the amount is transferred, and 11 ‘‘(C) be filed with the Director of the Re- 12 tirement Savings Lost and Found established 13 under section 2(a) of the Retirement Savings 14 Lost and Found Act of 2020 as well as with the 15 Secretary.’’. 16 (3) NOTIFICATION OF PARTICIPANTS UPON SEP- 17 ARATION.—Subsection (e) of section 6057 of such 18 Code is amended by inserting ‘‘, and a notice of the 19 availability of the Retirement Savings Lost and 20 Found established under section 2(a) of the Retire- 21 ment Savings Lost and Found Act of 2020’’ before 22 the period at the end of the second sentence. 23 (4) EFFECTIVE DATE.—The amendments made 24 by this subsection shall apply to distributions made 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 4192 IS in, and returns and reports relating to, years begin- 1 ning after the second December 31 occurring after 2 the date of the enactment of this Act. 3 (d) COORDINATION WITH DISTRIBUTION REQUIRE- 4 MENTS, FIDUCIARY DUTIES, ETC.— 5 (1) AMENDMENT OF INTERNAL REVENUE CODE 6 OF 1986.—Paragraph (9) of section 401(a) of the In- 7 ternal Revenue Code of 1986 is amended by adding 8 at the end the following new subparagraph: 9 ‘‘(I) COORDINATION WITH RETIREMENT 10 SAVINGS LOST AND FOUND.— 11 ‘‘(i) IN GENERAL.—With respect to 12 any lost or missing participant of a plan, 13 the plan shall not be treated as failing to 14 satisfy the requirements of this paragraph 15 or any other requirement of this title which 16 cannot be satisfied due to the plan’s inabil- 17 ity to locate the participant. 18 ‘‘(ii) LOST OR MISSING PARTICI- 19 PANT.—Not later than 1 year after the 20 date of the enactment of this subpara- 21 graph, the Secretary (in consultation with 22 the Commissioner of Internal Revenue), 23 the Secretary of Labor (in consultation 24 with the Assistant Secretary of Labor for 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 4192 IS the Employee Benefits Security Adminis- 1 tration), and the Pension Benefit Guaranty 2 Corporation shall issue joint guidance de- 3 fining the term ‘lost or missing partici- 4 pant’ for purposes of this subparagraph.’’. 5 (2) AMENDMENT OF EMPLOYEE RETIREMENT 6 INCOME SECURITY ACT OF 1974.— 7 (A) IN GENERAL.—Section 404 of the Em- 8 ployee Retirement Income Security Act of 1974 9 (29 U.S.C. 1104) is amended by adding at the 10 end the following new subsection: 11 ‘‘(f) COORDINATION WITH RETIREMENT SAVINGS 12 LOST AND FOUND.— 13 ‘‘(1) IN GENERAL.—With respect to any lost or 14 missing participant of a plan, a fiduciary of the plan 15 shall not be treated as failing to satisfy any require- 16 ment to search for or attempt to locate, or to pro- 17 vide any document or information to, such indi- 18 vidual, or any other requirement of this title which 19 cannot be satisfied due to the plan’s inability to lo- 20 cate the participant. 21 ‘‘(2) LOST OR MISSING PARTICIPANT.—Not 22 later than 1 year after the date of the enactment of 23 this subparagraph, the Secretary (in consultation 24 with the Assistant Secretary of Labor for the Em- 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 4192 IS ployee Benefits Security Administration), the Sec- 1 retary of the Treasury (in consultation with the 2 Commissioner of Internal Revenue), and the Pension 3 Benefit Guaranty Corporation shall issue joint guid- 4 ance defining the term ‘lost or missing participant’ 5 for purposes of this subsection.’’. 6 (B) CONFORMING AMENDMENTS.—Section 7 4050(a)(1)(B) of the Employee Retirement In- 8 come Security Act of 1974 (29 U.S.C. 9 1350(a)(1)) is amended— 10 (C) in subparagraph (B)— 11 (i) by striking ‘‘provides’’ and insert- 12 ing ‘‘either— 13 ‘‘(i) provides’’; 14 (ii) by striking the period at the end 15 and inserting ‘‘; or’’; and 16 (iii) by adding at the end the fol- 17 lowing new clause: 18 ‘‘(ii) satisfies the requirements of sec- 19 tion 6057(a) of the Internal Revenue Code 20 of 1986.’’. 21 (e) REQUIREMENT OF ELECTRONIC FILING.— 22 (1) IN GENERAL.—Paragraph (2) of section 23 6011(e) of the Internal Revenue Code of 1986 is 24 amended— 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 12 •S 4192 IS (A) by redesignating subparagraphs (A) 1 and (B) as clauses (i) and (ii), respectively, and 2 by moving such clauses 2 ems to the right; 3 (B) by striking ‘‘REGULATIONS.—In pre- 4 scribing’’ and inserting ‘‘REGULATIONS.— 5 ‘‘(A) IN GENERAL.—In prescribing’’; and 6 (C) by adding at the end the following new 7 subparagraph: 8 ‘‘(B) EXCEPTIONS.—Notwithstanding sub- 9 paragraph (A), the Secretary shall require re- 10 turns or reports required under— 11 ‘‘(i) sections 6057, 6058, and 6059, 12 and 13 ‘‘(ii) sections 408(i), 6041, and 6047 14 to the extent such return or report relates 15 to the tax treatment of a distribution from 16 a plan, account, contract, or annuity, 17 to be filed on magnetic media, but only with re- 18 spect to persons who are required to file at 19 least 50 returns during the calendar year which 20 includes the first day of the plan year to which 21 such returns or reports relate.’’. 22 (2) EFFECTIVE DATE.—The amendments made 23 by this subsection shall apply to returns and reports 24 relating to years beginning after the second Decem- 25 VerDate Sep 11 2014 19:51 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4192.IS S4192 pamtmann on DSKBC07HB2PROD with BILLS 13 •S 4192 IS ber 31 occurring after the date of the enactment of 1 this Act. 2 (f) SAFEGUARDING PARTICIPANT PRIVACY AND SE- 3 CURITY.—In establishing the Retirement Savings Lost 4 and Found under subsection (a), the Commissioner of So- 5 cial Security and the Secretary of the Treasury shall take 6 all necessary and proper [Text truncated for display. 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