Sec. 306. Retirement savings lost and found
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Not later than 2 years after the date of the enactment of this Act, the Secretary of Labor, the Secretary of the Treasury, and the Secretary of Commerce, in cooperation, shall establish an Office of the Retirement Savings Lost and Found, which shall develop and maintain an online searchable database (to be managed by the Pension Benefit Guaranty Corporation) of unclaimed vested benefits of participants and beneficiaries in plans— 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 subparagraph
(B)with respect to which the individual may be entitled to a benefit; to allow the corporation to assist such an individual in locating any plan of the individual; and to allow the corporation 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 two or more plans, bankruptcy, termination, change in name of the plan, change in name or address of the plan administrator, or other causes. The Retirement Savings Lost and Found established under this paragraph shall contain the information obtained by the corporation from the Internal Revenue Service regarding deferred vested benefits of separated participants and beneficiaries in plans as reported under section 6057(d) of the Internal Revenue Code of 1986, as amended by this subsection, and the information on missing participants collected as part of the corporation’s Missing Participant Program established under section 4050 of the Employee Retirement Income Security Act of 1974. A plan described in this subparagraph 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. The Retirement Savings Lost and Found established under paragraph
(1)shall provide individuals described in paragraph (1)(A) 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 in order to recover any benefit owing to the individual under the plan. Paragraph
(2)of section 6057(a) of the Internal Revenue Code of 1986 is amended— in subparagraph (C)— by striking during such plan year in clause
(i)and inserting during the plan year immediately preceding such plan year ; by adding and at the end of clause (i); and by striking clause (iii); by redesignating subparagraph
(E)as subparagraph (G); by striking and at the end of subparagraph (D); and by inserting after subparagraph
(D)the following new subparagraphs: the name and taxpayer identifying number of each participant or former participant in the plan— 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, with respect to whom any amount was distributed under section 401(a)(31)(B) during the plan year, or with respect to whom a deferred annuity contract was distributed during the plan year, in the case of a participant or former participant to whom subparagraph
(E)applies— 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 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 . Paragraph
(6)of section 402(e) of such Code is amended— by striking and inserting “ transfers .—Any transfers .— Any ; and by adding at the end the following new subparagraph: 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. . Subsection
(i)of section 6652 of such Code is amended— by striking in the heading and inserting to recipients ; or notification by striking 402(f), and inserting 402(f) or a notification as required by section 402(e)(6)(B), ; and by striking such written explanation and inserting such written explanation or notification . Subsection
(i)of section 408 of such Code is amended— 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; by redesignating paragraphs
(1)and
(2)as subparagraphs
(A)and (B), respectively, and by moving such subparagraphs 2 ems to the right; and 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. In the case of a simple retirement account ; by striking and inserting “ Reports .—The trustee of Reports.— The trustee of ; by striking under paragraph
(2)in paragraph (3), as redesignated by clause (iii), and inserting under paragraph (1)(B) ; and by inserting after paragraph (1)(B)(ii), as redesignated by the preceding clauses, the following new paragraph: 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 shall— identify such transfer as a mandatory distribution required by such section, 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 be filed with the Pension Benefit Guaranty Corporation as well as with the Secretary. . Subsection
(e)of section 6057 of such Code is amended by inserting , and a notice of the availability of, and the contact information for, the Retirement Savings Lost and Found established under section 306(a)(1) of the before the period at the end of the second sentence. Securing a Strong Retirement Act of 2020 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. 1986 Paragraph
(9)of section 401(a) of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subparagraph: With respect to any lost or missing participant of a plan, the plan shall not be treated as failing to satisfy the requirements of this paragraph or any other requirement of this title which cannot be satisfied due to the plan’s inability to locate the participant. For purposes of subclause (i), the term lost or missing participant shall be defined in guidance to be issued jointly by the Internal Revenue Service, Department of the Treasury, the Employee Benefits Security Administration, Department of Labor, and the Pension Benefit Guaranty Corporation. Such guidance shall be so issued not later than 1 year after the date of the enactment of this subparagraph. . 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: With respect to any lost or missing participant of a plan, a fiduciary of the plan shall not be treated as failing to satisfy any requirement to search for or attempt to locate, or to provide any document or information to, such individual, or any other requirement of this title which cannot be satisfied due to the plan's inability to locate the participant. For purposes of paragraph (1), the term lost or missing participant shall be defined in guidance to be issued jointly by the Internal Revenue Service, Department of the Treasury, the Employee Benefits Security Administration, Department of Labor, and the Pension Benefit Guaranty Corporation. . Section 4050(a)(1) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1350(a)(1) ) is amended in subparagraph (B)— by striking provides and inserting either— provides ; by striking the period at the end and inserting ; or ; and by adding at the end the following new clause: satisfies the requirements of section 6057(a) of the Internal Revenue Code of 1986. . Paragraph
(2)of section 6011(e) of the Internal Revenue Code of 1986 is amended— by redesignating subparagraphs
(A)and
(B)as clauses
(i)and (ii), respectively, and by moving such clauses 2 ems to the right; by striking the requirements of such regulations and all that follows through the Secretary shall require and inserting “the requirements of such regulations. Notwithstanding subparagraph (A), the Secretary shall require ; by striking and inserting “ regulations .—In prescribing regulations .— In prescribing ; and by adding at the end the following new subparagraph: Notwithstanding subparagraph (A), the Secretary shall require returns or reports required under— sections 6057, 6058, and 6059, and 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. . 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. In establishing the Retirement Savings Lost and Found under paragraph (1), the Secretary of Labor, the Secretary of Treasury, and the Secretary of Commerce 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, and to allow any individual to opt out of inclusion in the Retirement Savings Lost and Found at the election of the individual. There are authorized to be appropriated such sums as may be necessary to carry out the purposes of this subsection. 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 provides in guidance or regulations issued after the enactment of the Securing a Strong Retirement Act of 2020 , is made to— a target date or life cycle fund held under such account; 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; the Pension Benefit Guaranty Corporation in accordance with section 401(a)(31)(B)(iv) of the Internal Revenue Code of 1986 and section 306(c)(2)(A)(ii) of the Securing a Strong Retirement Act of 2020; or such other option as the Secretary may so provide. . Not later than 270 days 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). 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 . 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 306 of the Securing a Strong Retirement Act shall not be treated as a trustee or issuer that is eligible to receive such distributions. . Section 401(a)(31)(B) of such Code is amended by adding at the end the following new clauses: 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 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, the plan administrator shall (either separately or as part of the notice under section 402(f)) notify the participant that the participant is entitled to such benefit or attempt to pay the benefit directly to the participant. If, after a plan administrator takes the action required under clause (iii), the participant does not— within 6 months of the notification under such clause, make an election under subparagraph
(A)or elect to receive a distribution of the benefit directly, or accept any direct payment made under such clause within 6 months of the attempted payment, the plan administrator shall transfer the amount of such benefit to the Office of the Retirement Savings Lost and Found in accordance with section 306(c)(2)(a)(ii) of the Securing a Strong Retirement Act of 2020 . For purposes of determining the income tax treatment of transfers to the Office of the Retirement Savings Lost and Found under clause (iv)— such a transfer shall be treated as a transfer to an individual retirement plan under clause (i), and the distribution of such amounts by the Office of the Retirement Savings Lost and Found shall be treated as a distribution from an individual retirement plan. . 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 after the second December 31 occurring after the date of the enactment of this Act. Not later than one year after the date of the enactment of this Act, the Secretary of Labor, the Secretary of Treasury, and the Secretary of Commerce shall establish within the Pension Benefit Guaranty Corporation an Office of the Retirement Savings Lost and Found to operate in conjunction with section 4050 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1350 ). In addition to administering the Retirement Savings Lost and Found under subsection
(a)and carrying out the duties described in clauses
(ii)and
(iii)of subsection (a)(1)(A), the Office of the Retirement Savings Lost and Found established under this section shall— perform an annual audit of plan information contained in the Retirement Savings Lost and Found and ensure that such information is current and accurate; invest any amount transferred under section 401(a)(31)(B)(iv) of the Internal Revenue Code of 1986 in United States Treasury securities; 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— in a single sum (plus interest); or in such other form as is specified in regulations; and 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. The Office of the Retirement Savings Lost and Found shall conduct an analysis of the cost effectiveness of contracting with a third party to carry out the responsibilities under subparagraph
(A)and, if the Pension Benefit Guaranty Corporation determines that it would be more cost effective to do so than to carry out such responsibilities within the Office of the Retirement Savings Lost and Found, the Director shall report to the Committees on Finance and Health, Education, Labor, and Pensions of the Senate and the Committees on Ways and Means and Education and Labor of the House of Representatives the intention to so contract. The Pension Benefit Guaranty Corporation may establish protocols to assist participants originally treated as lost or missing in claiming their benefits under a plan. The Office of the Retirement Savings Lost and Found shall coordinate with the Social Security Administration, the Employee Benefits Security Administration, and other applicable agencies to integrate information and databases on lost, missing, and inactive participants. Section 6057 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended by redesignating subsection
(h)as subsection
(i)and by inserting after subsection
(g)the following new subsection: The Secretary shall transmit copies of any statements, notifications, reports, or other information obtained by him under this section to the Director of the Pension Benefit Guaranty Corporation. .
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