[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3078 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  2d Session
                                S. 3078

 To increase portability of and access to retirement savings, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 21, 2016

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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Retirement Savings Lost and Found 
Act of 2016''.

SEC. 2. RETIREMENT SAVINGS LOST AND FOUND.

    (a) Establishment.--
            (1) In general.--Not later than 2 years after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        and the Secretary of the Treasury in cooperation shall 
        establish an online mechanism to be known as the ``Retirement 
        Savings Lost and Found'', to be managed by the Director of the 
        Retirement Savings Lost and Found established under section 
        3(c) of this Act--
                    (A) to allow an individual to search for 
                information that enables the individual to locate the 
                plan administrator of any plans with respect to which 
                the individual is a participant or beneficiary, and to 
                provide contact information for the plan administrator 
                of any plan described in paragraph (2) with respect to 
                which the individual may be entitled to a benefit,
                    (B) to allow such Director to assist such an 
                individual in locating any plan of the individual, and
                    (C) to allow such Director to make any necessary 
                changes to contact information on record for the plan 
                administrator based on any changes to the plan due to 
                merger or consolidation of the plan with any other 
                plan, division of the plan into 2 or more plans, 
                bankruptcy, termination, change in name of the plan, 
                change in name or address of the plan administrator, or 
                other causes.
            (2) Plans described.--A plan described in this paragraph is 
        a plan to which the vesting standards of section 203 of part 2 
        of subtitle B of title I of the Employee Retirement Income 
        Security Act of 1974 apply with respect to any plan year to 
        which the amendments made by subsection (c)(2)(C) apply.
    (b) Administration.--The Retirement Savings Lost and Found 
established under subsection (a) shall provide individuals described in 
subsection (a)(1) only with the ability to view contact information for 
the plan administrator of any plan with respect to which the individual 
is a participant or beneficiary, sufficient to allow the individual to 
locate the individual's plan.
    (c) Current Information.--
            (1) In general.--Paragraph (2) of section 6057(a) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by redesignating subparagraph (E) as 
                subparagraph (G),
                    (B) by striking ``and'' at the end of subparagraph 
                (D), and
                    (C) by inserting after subparagraph (D) the 
                following new subparagraphs:
                    ``(E) the name and taxpayer identifying number of 
                each participant or former participant in the plan--
                            ``(i) who, during any previous plan year, 
                        was reported under subparagraph (C), and with 
                        respect to whom the benefits described in 
                        subparagraph (C)(ii) were fully paid during the 
                        plan year,
                            ``(ii) with respect to whom any amount was 
                        distributed under section 401(a)(31)(B) during 
                        the plan year, or
                            ``(iii) with respect to whom an annuity 
                        contract was distributed during the plan year,
                    ``(F) in the case of a participant or former 
                participant to whom subparagraph (E) applies--
                            ``(i) the amount distributed,
                            ``(ii) in the case of a participant 
                        described in clause (ii) thereof, the name and 
                        address of the designated trustee or issuer 
                        described in section 401(a)(31)(B)(i) and the 
                        account number of the individual retirement 
                        plan to which the amount was distributed, and
                            ``(iii) in the case of a participant 
                        described in clause (iii) thereof, the name and 
                        address of the issuer of such annuity contract 
                        and the contract or certificate number, and''.
            (2) Rules relating to direct trustee-to-trustee 
        transfers.--
                    (A) In general.--Paragraph (6) of section 402(e) of 
                such Code is amended--
                            (i) by striking ``transfers.--Any'' and 
                        inserting ``transfers.--
                    ``(A) In general.--Any'', and
                            (ii) by adding at the end the following new 
                        subparagraph:
                    ``(B) Notification of trustee.--In the case of a 
                distribution under section 401(a)(31)(B), the plan 
                administrator shall notify the designated trustee or 
                issuer described in clause (i) thereof that the 
                transfer is a mandatory distribution required by such 
                section.''.
                    (B) Penalty.--Subsection (i) of section 6652 of 
                such Code is amended--
                            (i) by striking ``to Recipients'' in the 
                        heading and inserting ``or Notification'',
                            (ii) by striking ``402(f),'' and inserting 
                        ``402(f) or a notification as required by 
                        section 402(e)(6)(B),'', and
                            (iii) by striking ``such written 
                        explanation'' and inserting ``such written 
                        explanation or notification''.
                    (C) Reports.--Subsection (i) of section 408 of such 
                Code is amended--
                            (i) by redesignating subparagraphs (A) and 
                        (B) of paragraph (2) as clauses (i) and (ii), 
                        respectively, and by moving such clauses 2 ems 
                        to the right,
                            (ii) by redesignating paragraphs (1) and 
                        (2) as subparagraphs (A) and (B), respectively, 
                        and by moving such subparagraphs 2 ems to the 
                        right,
                            (iii) by striking ``as the Secretary 
                        prescribes'' in subparagraph (B)(ii), as so 
                        redesignated, and all that follows through ``a 
                        simple retirement account'' and inserting ``as 
                        the Secretary prescribes.
            ``(3) Simple retirement accounts.--In the case of a simple 
        retirement account'',
                            (iv) by striking ``Reports.--The trustee 
                        of'' and inserting ``Reports.--
            ``(1) In general.--The trustee of'',
                            (v) by striking ``under paragraph (2)'' in 
                        paragraph (3), as redesignated by clause (iii), 
                        and inserting ``under paragraph (1)(B)'', and
                            (vi) by inserting after paragraph 
                        (1)(B)(ii), as redesignated by the preceding 
                        clauses, the following new paragraph:
            ``(2) Mandatory distributions.--In the case of an account, 
        contract, or annuity to which a transfer of a distribution 
        under section 401(a)(31)(B) is made (including a transfer of 
        such an amount from the individual retirement plan to which the 
        amount was originally transferred to another individual 
        retirement plan), the report required by this subsection 
        shall--
                    ``(A) identify the distribution of such amount as a 
                mandatory distribution required by such section,
                    ``(B) include the name, address, and taxpayer 
                identifying number of the trustee or issuer of the 
                individual retirement plan to which the amount is 
                transferred, and
                    ``(C) be filed with the Director of the Retirement 
                Savings Lost and Found established under section 2(a) 
                of the Retirement Savings Lost and Found Act of 2016 as 
                well as with the Secretary.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to distributions made, and returns and reports the 
        due date for which is, after the date that is one year after 
        the date of the enactment of this Act.
    (d) Requirement of Electronic Filing.--
            (1) In general.--Paragraph (2) of section 6011(e) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and by moving such 
                clauses 2 ems to the right,
                    (B) by striking ``the requirements of such 
                regulations'' and all that follows through ``the 
                Secretary shall require'' and inserting ``the 
                requirements of such regulations.
                    ``(B) Certain partnerships.--Notwithstanding 
                subparagraph (A), the Secretary shall require'',
                    (C) by striking ``regulations.--In prescribing'' 
                and inserting ``regulations.--
                    ``(A) In general.--In prescribing'', and
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(C) Exceptions.--Notwithstanding subparagraph 
                (A), the Secretary shall require returns or reports 
                required under--
                            ``(i) sections 6057, 6058, and 6059, and
                            ``(ii) sections 408(i), 6041, and 6047 to 
                        the extent such return or report relates to the 
                        tax treatment of a distribution from a plan, 
                        account, contract, or annuity,
                to be filed on magnetic media, but only with respect to 
                persons who are required to file at least 50 returns 
                during the calendar year that includes the first day of 
                the plan year to which such returns or reports 
                relate.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to returns and reports the due date for which is 
        after the date of the enactment of this Act.
    (e) Safeguarding Participant Privacy and Security.--In establishing 
the Retirement Savings Lost and Found under subsection (a), the 
Commissioner of Social Security and the Secretary of the Treasury shall 
take all necessary and proper precautions, including consulting with 
the Secretary of Health and Human Services, to ensure that 
participants' plan information maintained by the Retirement Savings 
Lost and Found is protected and that persons other than the participant 
cannot fraudulently claim the benefits to which any participant is 
entitled, and to allow any participant to opt out of inclusion in the 
Lost and Found at the election of the participant.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purposes of 
this section.

SEC. 3. MANDATORY TRANSFERS OF ROLLOVER DISTRIBUTIONS.

    (a) Investment Options.--
            (1) In general.--Subparagraph (B) of section 404(c)(3) of 
        the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1104(c)(3)) is amended by inserting ``, and, to the extent the 
        Secretary provides in guidance or regulations issued after the 
        enactment of the Retirement Savings Lost and Found Act of 2016, 
        is made to a target date or lifecycle fund or to such other 
        option as the Secretary may so provide'' before the period.
            (2) Regulations.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Labor shall 
        promulgate regulations identifying the target date or lifecycle 
        funds, or specifying the characteristics of a target date or 
        lifecycle fund, that will be deemed to meet the requirements of 
        section 404(c)(3)(B) of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1104(c)(3)(B)), as amended by paragraph 
        (1).
    (b) Expansion of Cap; Authority To Transfer Lesser Amounts.--
            (1) In general.--Clause (ii) of section 401(a)(31)(B) of 
        the Internal Revenue Code of 1986 is amended by striking 
        ``$5,000'' and inserting ``$6,000''.
            (2) Lesser amounts.--Subparagraph (B) of section 401(a)(31) 
        of such Code is amended by adding at the end the following new 
        clauses:
                            ``(iii) Transfers of lesser amounts to 
                        retirement savings lost and found or 
                        treasury.--In the case of a trust which is part 
                        of an eligible plan, such trust shall not be a 
                        qualified trust under this section unless such 
                        plan provides that if--
                                    ``(I) a participant in the plan 
                                separates from the service covered by 
                                the plan and the deferred vested 
                                benefit to which such participant is 
                                entitled is not in excess of $1,000, 
                                and
                                    ``(II) the participant does not 
                                make an election under subparagraph (A) 
                                and does not elect to receive the 
                                distribution directly,
                        the plan administrator shall, after notifying 
                        the participant that the participant is 
                        entitled to such benefit, transfer the amount 
                        of such benefit to the Director of the 
                        Retirement Savings Lost and Found in accordance 
                        with section 3(c)(2) of the Retirement Savings 
                        Lost and Found Act of 2016, or to an individual 
                        retirement account (as defined in section 
                        408(a)) established by the Secretary. Such 
                        transfer shall not be made before the later of 
                        the date that is 6 months after the date on 
                        which the participant receives the notification 
                        required under the preceding sentence, or, if 
                        the plan administrator attempts to pay the 
                        distribution to the participant directly but 
                        the participant has not claimed the 
                        distribution, the date that is 6 months after 
                        the date on which the attempted payment was 
                        sent to the participant.
                            ``(iv) Income tax treatment of transfers to 
                        retirement savings lost and found.--For 
                        purposes of determining the income tax 
                        treatment of transfers to the Director of the 
                        Retirement Savings Lost and Found under clause 
                        (iii)--
                                    ``(I) such a transfer shall be 
                                treated as a transfer to an individual 
                                retirement plan under clause (i), and
                                    ``(II) the distribution of such 
                                amounts by the Director of the 
                                Retirement Savings Lost and Found shall 
                                be treated as a distribution from an 
                                individual retirement plan.
                            ``(v) Notification to retirement savings 
                        lost and found.--In the case of a trust which 
                        is part of an eligible plan, if a participant 
                        in the plan separates from the service covered 
                        by the plan, the plan administrator shall 
                        report--
                                    ``(I) the total amount of the 
                                deferred vested benefit to which the 
                                participant is entitled, and
                                    ``(II) the amount of any 
                                distribution of such benefit made to 
                                and claimed by the participant,
                        to the Director of the Retirement Savings Lost 
                        and Found for purposes of the Retirement 
                        Savings Lost and Found established under 
                        section 2(a) of the Retirement Savings Lost and 
                        Found Act of 2016.''.
    (c) Office of the Retirement Savings Lost and Found.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        and the Secretary of the Treasury shall establish within the 
        appropriate agency or subdivision thereof an Office of the 
        Retirement Savings Lost and Found, to be administered by a 
        Director of the Retirement Savings Lost and Found who (without 
        regard to the agency or subdivision where such Office is 
        established) shall report to both such Commissioner and such 
        Secretary.
            (2) Responsibilities of director.--
                    (A) In general.--In addition to administering the 
                Retirement Savings Lost and Found under section 2, the 
                Director of the Retirement Savings Lost and Found 
                established under this subsection shall--
                            (i) invest any amount transferred under 
                        section 401(a)(31)(B)(iii) of the Internal 
                        Revenue Code of 1986 in United States Treasury 
                        securities;
                            (ii) upon application filed by the 
                        participant or beneficiary in such form and 
                        manner as may be prescribed in regulations, pay 
                        to the participant or beneficiary the amount 
                        transferred (or the appropriate survivor 
                        benefit) either--
                                    (I) in a single sum (plus 
                                interest); or
                                    (II) in such other form as is 
                                specified in regulations; and
                            (iii) identify such amount as eligible to 
                        be paid into an eligible retirement plan 
                        described in section 402(c)(8)(B) of the 
                        Internal Revenue Code of 1986.
                    (B) Option to contract.--The Director of the 
                Retirement Savings Lost and Found may contract with a 
                third party to carry out the responsibilities under 
                subparagraph (A).
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to distributions 
        made after the date that is 2 years after the date of the 
        enactment of this Act.
            (2) Mandatory transfer of vested benefits.--The amendments 
        made by subsection (b) shall apply to vested benefits with 
        respect to participants who separate from service connected to 
        the plan before, on, or after the date that is 2 years after 
        the date of the enactment of this Act.
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