[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5832 Introduced in House (IH)]

<DOC>






117th CONGRESS
  1st Session
                                H. R. 5832

   To establish the Retirement Savings Lost and Found, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 3, 2021

 Ms. Bonamici introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
Education and Labor, for a period to be subsequently 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 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 2021''.

SEC. 2. RETIREMENT SAVINGS LOST AND FOUND.

    (a) In General.--
            (1) Establishment of retirement savings lost and found.--
        Subtitle C of title IV of the Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1341 et seq.) is amended by 
        adding at the end the following:

``SEC. 4051. RETIREMENT SAVINGS LOST AND FOUND.

    ``(a) Establishment.--
            ``(1) In general.--Not later than 3 years after the date of 
        the enactment of this section, the Secretary, in consultation 
        with the Secretary of the Treasury, shall establish an online 
        searchable database (to be managed by the Secretary in 
        accordance with this section) to be known as the `Retirement 
        Savings Lost and Found'. The Retirement Savings Lost and Found 
        shall--
                    ``(A) allow an individual to search for information 
                that enables the individual to locate the administrator 
                of any plan described in paragraph (2) with respect to 
                which the individual is or was a participant or 
                beneficiary, and to provide contact information for the 
                administrator of any such plan;
                    ``(B) allow the Secretary to assist such an 
                individual in locating any such plan of the individual; 
                and
                    ``(C) allow the Secretary to make any necessary 
                changes to contact information on record for the 
                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 two or more plans, 
                bankruptcy, termination, change in name of the plan, 
                change in name or address of the administrator, or 
                other causes.
        The Retirement Savings Lost and Found established under this 
        paragraph shall include information reported under this section 
        and other relevant information obtained by the Secretary.
            ``(2) Plans described.--A plan described in this paragraph 
        is a plan to which the vesting standards of section 203 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 administrator of any plan with respect to which the individual is 
or was a participant or beneficiary, sufficient to allow the individual 
to locate the individual's plan in order to recover any benefit owing 
to the individual under the plan.
    ``(c) Safeguarding Participant Privacy and Security.--In 
establishing the Retirement Savings Lost and Found under subsection 
(a), the Secretary shall take all necessary and proper precautions to 
ensure that individuals' plan information maintained by the Retirement 
Savings Lost and Found is protected and that persons other than the 
individual cannot fraudulently claim the benefits to which any 
individual is entitled.
    ``(d) Definitions.--For purposes of this section and section 4052--
            ``(1) the term `administrator' has the meaning given such 
        term in section 3(16)(A); and
            ``(2) the term `Secretary' means the Secretary of Labor.

``SEC. 4052. OFFICE OF THE RETIREMENT SAVINGS LOST AND FOUND.

    ``(a) Establishment; Responsibilities of Office.--
            ``(1) In general.--Not later than 2 years after the date of 
        the enactment of this section, the Secretary, in consultation 
        with the Secretary of the Treasury, shall establish within the 
        Department of Labor an Office of the Retirement Savings Lost 
        and Found (in this section referred to as the `Office').
            ``(2) Responsibilities of office.--The Office shall--
                    ``(A) carry out subsection (b) of this section; and
                    ``(B) maintain the Retirement Savings Lost and 
                Found established under section 4051.
    ``(b) Certain Non-Responsive Participants Entitled to Small 
Benefits.--
            ``(1) General rule.--
                    ``(A) Transfer to the office of the retirement 
                savings lost and found.--The administrator of a plan 
                that is not terminated and to which section 
                401(a)(31)(B) of the Internal Revenue Code of 1986 
                applies may transfer to the Office the amount allowed 
                to be transferred under section 401(a)(31)(B)(iv) of 
                such Code for a non-responsive participant (after the 
                requirements of section 401(a)(31)(B)(iii) are met).
                    ``(B) Information and payment to the office.--Upon 
                making a transfer under subparagraph (A), the 
                administrator shall provide to the Office such 
                information and certifications as the Office shall 
                specify, including with respect to the transferred 
                amount and the non-responsive participant, within such 
                time and in such manner as may be specified by the 
                Office.
                    ``(C) Information requirements after transfer.--
                            ``(i) In general.--In the event that, after 
                        a transfer is made under subparagraph (A), the 
                        relevant non-responsive participant contacts 
                        the administrator, the administrator shall 
                        notify and provide such information to the non-
                        responsive participant, within such time and in 
                        such manner, as the Office shall specify.
                            ``(ii) Civil penalty.--The Secretary may 
                        assess a civil penalty against the 
                        administrator of a plan of up to $100 a day 
                        from the date of the administrator's failure or 
                        refusal to provide notice and required 
                        information to a non-responsive participant in 
                        accordance with clause (i).
                    ``(D) Search and payment by the office following 
                transfer.--Upon receiving information described in 
                subparagraph (C), the Office shall attempt to contact 
                (including conducting a search for) the non-responsive 
                participant for whom the Office has received a transfer 
                under subparagraph (A). Upon location of a non-
                responsive participant who claims benefits, the Office 
                shall make a single payment to the non-responsive 
                participant in an amount equal to the sum of--
                            ``(i) the amount transferred to the Office 
                        under subparagraph (A) for such participant; 
                        and
                            ``(ii) interest, determined in the same 
                        manner as for purposes of section 4050.
                The Office shall take all reasonable steps to assist 
                the participant to roll over the payment made under 
                this paragraph to an eligible retirement plan (as 
                defined in section 402(c)(8) of the Internal Revenue 
                Code of 1986) in a manner that ensures that such 
                payment will not be includible in the gross income of 
                the participant for the taxable year in which paid.
            ``(2) Definition.--For purposes of this subsection, the 
        term `non-responsive participant' means--
                    ``(A) a participant or beneficiary of a plan 
                described in paragraph (1)(A)--
                            ``(i) who is entitled to a benefit subject 
                        to a transfer under section 401(a)(31)(B)(iii) 
                        of the Internal Revenue Code of 1986; and
                            ``(ii) for whom the plan has satisfied the 
                        conditions in such section and section 
                        401(a)(31)(B)(iv) of such Code, and any 
                        requirements relating to the location of 
                        missing participants established by the 
                        Secretary pursuant to title I of this Act; and
                    ``(B) any other participant or beneficiary 
                determined to be lost or missing under regulations to 
                be issued by the Secretary, in consultation with the 
                Secretary of the Treasury.
            ``(3) Regulatory authority.--The Secretary shall prescribe 
        such regulations as are necessary to carry out the purposes of 
        this section.
    ``(c) Information Collection.--The administrator of a plan to which 
the vesting standards of section 203 apply shall submit to the Office, 
at such time and in such form and manner as is prescribed in 
regulations--
            ``(1) the information described in paragraphs (1) through 
        (4) of section 6057(b) of the Internal Revenue Code of 1986;
            ``(2) the information described in subparagraphs (A), (B), 
        (E), and (F) of section 6057(a)(2) of the Internal Revenue Code 
        of 1986; and
            ``(3) such other information as the Secretary may require.
    ``(d) Program Integrity Audit.--On an annual basis for each of the 
first 5 years beginning after the date of enactment of this section and 
every 5 years thereafter, the Inspector General of the Department of 
Labor shall conduct an audit of the administration of the Retirement 
Savings Lost and Found by the Office, including an assessment of fraud 
relating to claims of benefits.
    ``(e) Application of State Escheat Laws.--No State law relating to 
the disposition of unclaimed or abandoned property under which a 
benefit amount under a plan to which this section applies would escheat 
to a State or otherwise become the property of a State under such a law 
shall apply with respect to any such benefit amount for any period 
beginning on or after the date of enactment of this section.
    ``(f) Effective Date.--The requirements of subsections (b), (c), 
and (d) shall apply with respect to plan years beginning after the 
second December 31 occurring after the date of the enactment of this 
section.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this 
section.''.
            (2) Conforming amendment.--The table of contents for the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 
        et seq.) is amended by inserting after the matter relating to 
        section 4050 the following:

``Sec. 4051. Retirement Savings Lost and Found.
``Sec. 4052. Office of the Retirement Savings Lost and Found.''.
    (b) Mandatory Transfers of Rollover Distributions.--
            (1) Investment options.--
                    (A) 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 
                striking the period at the end and inserting ``, and, 
                to the extent the Secretary of Labor provides in 
                guidance or regulations issued after the enactment of 
                this Act, is made to--
                            ``(i) a target date or life cycle fund held 
                        under such account;
                            ``(ii) as described in section 2550.404a-2 
                        of title 29, Code of Federal Regulations, an 
                        investment product held under such account 
                        designed to preserve principal and provide a 
                        reasonable rate of return;
                            ``(iii) the Office of the Retirement 
                        Savings Lost and Found in accordance with 
                        section 401(a)(31)(B)(iv) of the Internal 
                        Revenue Code of 1986 and section 4052(b)(1)(A); 
                        or
                            ``(iv) such other option as the Secretary 
                        of Labor may so provide.''.
                    (B) Regulations.--Not later than 1 year after the 
                date of the enactment of this Act, the Secretary of 
                Labor shall promulgate regulations identifying the 
                target date or life cycle funds, or specifying the 
                characteristics of such a fund, that will be deemed to 
                meet the requirements of section 404(c)(3)(B)(i) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1104(c)(3)(B)), as amended by subparagraph (A).
            (2) Expansion of cap; authority to transfer lesser 
        amounts.--
                    (A) Cap.--Sections 401(a)(31)(B)(ii) and 
                411(a)(11)(A) of the Internal Revenue Code of 1986 and 
                section 203(e)(1) of the Employee Retirement Income 
                Security Act of 1974 are each amended by striking 
                ``$5,000'' and inserting ``$6,000''.
                    (B) Distribution of larger amounts to individual 
                retirement plans only.--Section 401(a)(31)(B)(i) of 
                such Code is amended by adding at the end the 
                following: ``The Office of the Retirement Savings Lost 
                and Found established by section 4051 of the Employee 
                Retirement Income Security Act of 1974 shall not be 
                treated as a trustee or issuer that is eligible to 
                receive such distributions.''.
                    (C) Lesser amounts.--
                            (i) Amendment of internal revenue code of 
                        1986.--Section 401(a)(31)(B) of such Code is 
                        amended by adding at the end the following new 
                        clauses:
                            ``(iii) Treatment of lesser amounts.--In 
                        the case of a trust which is part of an 
                        eligible plan (as defined in clause (ii)) to 
                        which the vesting standards of section 203 of 
                        the Employee Retirement Income Security Act of 
                        1974 apply, such trust shall not be a qualified 
                        trust under this section unless such plan 
                        provides that, if a participant in the plan 
                        separates from the service covered by the plan 
                        and the nonforfeitable accrued benefit 
                        described in clause (ii) is not in excess of 
                        $1,000 (including in any case in which payment 
                        of such a benefit is attempted but not accepted 
                        by the participant or beneficiary within 6 
                        months of such payment attempt)--
                                    ``(I) the plan administrator may, 
                                after conducting a diligent search as 
                                provided in clause (vi) and notifying 
                                the participant (either separately or 
                                as part of the notice under section 
                                402(f) of such Code) that the 
                                participant is entitled to such 
                                benefit, or attempting to pay the 
                                benefit directly to the participant, 
                                transfer such amount to the Office in 
                                accordance with clause (iv); and
                                    ``(II) the plan administrator shall 
                                not charge against the benefit any 
                                administrative or other fee for such 
                                transfer.
                            ``(iv) Transfers to retirement savings lost 
                        and found.--If, after a plan administrator 
                        takes the actions required under clause 
                        (iii)(I), the participant does not--
                                    ``(I) not later than 3 years after 
                                the notification under such paragraph, 
                                make an election under subparagraph (A) 
                                or elect to receive a distribution of 
                                the benefit directly, or
                                    ``(II) accept any payment made 
                                under such clause within 3 years of the 
                                attempted payment,
                        the plan administrator may transfer the amount 
                        of such benefit to the Office of the Retirement 
                        Savings Lost and Found in accordance with 
                        section 4052(b) of the Employee Retirement 
                        Income Security Act of 1974.
                            ``(v) Income tax treatment of transfers to 
                        and distributions from retirement savings lost 
                        and found.--For purposes of determining the 
                        income tax treatment of transfers to the Office 
                        of the Retirement Savings Lost and Found under 
                        clause (iv) or of transfers to an employee 
                        benefit plan or individual retirement account--
                                    ``(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 Office of the Retirement 
                                Savings Lost and Found shall be treated 
                                as a distribution in accordance with 
                                section 4050(a) of the Employee 
                                Retirement Income Security Act of 1974 
                                from an individual retirement plan.
                            ``(vi) Diligent search.--For purposes of 
                        clause (iii), a diligent search requires taking 
                        all of the following steps, consistent with 
                        guidance issued by the Secretary of Labor, in 
                        consultation with the Secretary of the 
                        Treasury, not later than 18 months after the 
                        date of enactment of this clause:
                                    ``(I) A search for alternate 
                                contact information (address, 
                                telephone, or email) in the possession 
                                of the plan, any related plan, or the 
                                plan sponsor.
                                    ``(II) Use of free online search 
                                engines, public record databases, 
                                publicly available directories, or 
                                obituaries.
                                    ``(III) Use of a commercial locator 
                                service, a credit reporting agency or a 
                                proprietary internet search tool for 
                                locating individuals.
                                    ``(IV) The mailing of a contact 
                                letter sent by United States Postal 
                                Service via certified mail to the last 
                                known address and to any other 
                                alternate address found.''.
                            (ii) Amendment of employee retirement 
                        income security act of 1974.--Section 404 of 
                        the Employee Retirement Income Security Act of 
                        1974 (29 U.S.C. 1104) is amended by adding at 
                        the end the following new subsection:
    ``(f) Safe Harbor With Respect to Transferring Account Balance of 
Missing Participants.--
            ``(1) In general.--With respect to the transfer 
        requirements of section 401(a)(31)(B) of the Internal Revenue 
        Code of 1986, the requirements of subsection (a)(1)(B) with 
        respect to the administrator will be deemed to be satisfied in 
        the case of a participant--
                    ``(A) who separates from the service covered by the 
                plan, and
                    ``(B) the nonforfeitable accrued benefit of whom 
                (as described in section 401(a)(31)(B)(ii) of such 
                Code) is not in excess of $1,000,
        if the administrator adopts practices and procedures with 
        respect to maintaining up-to-date contact information on 
        participants and fulfills the requirements of paragraphs (2), 
        (3), and (4).
            ``(2) Notification.--The requirements of this paragraph are 
        satisfied if the administrator conducts a diligent search as 
        provided in paragraph (4) and notifies the participant (either 
        separately or as part of the notice under section 402(f) of 
        such Code) that the participant is entitled to such benefit, or 
        attempts to pay the benefit directly to the participant.
            ``(3) Transfers to retirement savings lost and found.--If, 
        after an administrator takes the actions required under 
        paragraph (2), the participant does not--
                    ``(A) not later than 3 years after the notification 
                under such paragraph, make an election under section 
                401(a)(31)(A) of such Code or elect to receive a 
                distribution of the benefit directly, or
                    ``(B) accept any payment made under such paragraph 
                within 3 years of the attempted payment,
        the administrator may transfer the amount of such benefit to 
        the Office of the Retirement Savings Lost and Found in 
        accordance with section 4052(b).
            ``(4) Diligent search.--For purposes of paragraph (2), a 
        diligent search requires taking all of the following steps, 
        consistent with guidance issued by the Secretary of Labor, in 
        consultation with the Secretary of the Treasury, not later than 
        18 months after the date of enactment of this clause:
                    ``(A) A search for alternate contact information 
                (address, telephone, or email) in the possession of the 
                plan, any related plan, or the plan sponsor.
                    ``(B) Use of free online search engines, public 
                record databases, publicly available directories, or 
                obituaries.
                    ``(C) Use of a commercial locator service, a credit 
                reporting agency or a proprietary internet search tool 
                for locating individuals.
                    ``(D) The mailing of a contact letter sent by 
                United States Postal Service via certified mail to the 
                last known address and to any other alternate address 
                found.
        An administrator of a plan that takes all of the steps 
        described in the preceding subparagraphs and that adopts 
        practices and procedures with respect to maintaining up-to-date 
        contact information on participants shall be deemed to meet its 
        fiduciary duty under section 404 with respect to locating a 
        non-responsive participant (as defined in section 
        4052(b)(2)).''.
                    (D) Effective date.--The amendments made by this 
                paragraph shall apply to vested benefits with respect 
                to participants who separate from service connected to 
                the plan in plan years beginning 1 year after the 
                finalization of the regulations issued pursuant to 
                section 4052(b)(2).
    (c) Better Reporting for Mandatory Transfers.--
            (1) In general.--Paragraph (2) of section 6057(a) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) in subparagraph (C)--
                            (i) by striking ``during such plan year'' 
                        in clause (i) and inserting ``during the plan 
                        year immediately preceding such plan year'';
                            (ii) by adding ``and'' at the end of clause 
                        (i); and
                            (iii) by striking clause (iii);
                    (B) by redesignating subparagraph (E) as 
                subparagraph (G);
                    (C) by striking ``and'' at the end of subparagraph 
                (D); and
                    (D) 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 the current plan year or 
                        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 a deferred 
                        annuity contract was distributed during the 
                        plan year,
                    ``(F) in the case of a participant or former 
                participant to whom subparagraph (E) applies (and to 
                the extent provided in regulations designed to protect 
                privacy to be issued by the Secretary of Labor)--
                            ``(i) 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
                            ``(ii) 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 
                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 under section 
        401(a)(31)(B) is made (including a transfer from the individual 
        retirement plan to which the original transfer under such 
        section was made to another individual retirement plan), the 
        report required by this subsection for the year of the transfer 
        and any year in which the information previously reported in 
        subparagraph (B) changes shall--
                    ``(A) identify such transfer 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 Secretary of Labor.''.
            (3) Notification of participants upon separation.--
        Subsection (e) of section 6057 of such Code is amended by 
        inserting ``, and, with respect to any benefit of the 
        individual subject to section 401(a)(31)(B), a notice of 
        availability of, and the contact information for, the 
        Retirement Savings Lost and Found established under section 
        4051 of the Employee Retirement Income Security Act of 1974'' 
        before the period at the end of the second sentence.
            (4) Effective date.--The amendments made by this paragraph 
        shall apply to distributions made in, and returns and reports 
        relating to, years beginning after the second December 31 
        occurring 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 ``Regulations.--In prescribing'' 
                and inserting ``Regulations.--
                    ``(A) In general.--In prescribing''; and
                    (C) 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 which includes the first day 
                of the plan year to which such returns or reports 
                relate.''.
            (2) Effective date.--The amendments made by this paragraph 
        shall apply to returns and reports relating to years beginning 
        after the second December 31 occurring after the date of the 
        enactment of this Act.
                                 <all>