DOL Launches Retirement Savings Lost and Found Database
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The SECURE Act 2.0, signed into law in late 2022, calls for additional changes to retirement plan savings and administration regulations. The legislation includes over 90 different provisions, including automatic enrollment, changes to catch-up contributions, an increase in the Required Minimum Distribution (RMD) age, and a reduction in the RMD penalty. There were also updates designed to encourage companies to offer an employer-sponsored retirement plan, including the Given the high number of provisions, there is a gradual phase-in period of five years.
One new update, found in Section 303, calls for the creation of an online searchable lost and found database where participants can find lost retirement savings. In late December 2024, the Department of Labor (DOL) officially launched the database and solicited plan sponsors to participate. It is important to remember that participation is not mandatory, but for those interested, details on the information requested are now available to help clients, prospects, and others. JLK Rosenberger has provided a summary of the key details below.
Information Collection Request Details
Those interested in participating in the program must receive approval from a plan fiduciary before releasing any information. Once approved, the information submission should include basic details about individuals who may be owed benefits under an ERISA plan. The Employee Benefit Plan Administration (EBSA) is asking for the name and Social Security Number of any participant who is:
- Separated from service (no longer with the company),
- Entitled to receive benefits from the plan
- Age 65 years or older
It is important to note that state privacy laws, which vary in scope and application, may impact what information can be disclosed. However, EBSA has stated it is unclear whether any would apply to submissions made to the database. In addition, if the plan acts in good faith when submitting the information, no enforcement action will be taken for providing such information without first obtaining participant consent when required by state law.
Privacy Protection
Some are concerned that creating a database that includes sensitive personal and financial details runs the risk that information could be disclosed to improper parties. EBSA has addressed this concern by requiring an identity-authenticated account for each Lost and Found user. This ensures that only results relevant to the account holder are offered for review. This format is expected to reduce the potential for misuse or abuse of information.
When to Make Submissions
Submissions should be made in the coming weeks for plans interested in participation. At a minimum, the data provided should be reviewed annually. However, EBSA encourages plans to update information at least quarterly to ensure the database is up to date. When making updates, it is important to report those participants or beneficiaries who are no longer owed a benefit because they were fully paid. This should include details on the payment and the date the payment took .
Contact Us
Introducing a national lost and found database will help former employees recover lost benefits. However, participation is voluntary, and plan sponsors should carefully consider whether they would like to participate. If you have questions about the information outlined above or need assistance with your next plan audit, JLK Rosenberger can help. For additional information, call 949-860-9902 or click here to contact us. We look forward to speaking with you soon.
