Bill > HR5325

This bill directs the Secretary of Labor to create a new regulation within 180 days that allows pension plan administrators to voluntarily transfer unclaimed retirement distributions to State unclaimed property programs through a national clearing house. Before transferring funds of $50 or more, administrators must first attempt to locate participants by searching informational databases and conducting reasonable contact searches. They must also send a notice to participants explaining that their unclaimed distribution will be transferred to their last known state's unclaimed property program unless they take action. The bill provides legal protection for administrators who follow these procedures, ensuring they won't be liable under existing Employee Retirement Income Security Act (ERISA) requirements. Plan administrators must submit quarterly reports to the Labor Secretary about these transfers, including participant details, and the transfers will be recorded in a Retirement Savings Lost and Found Database. The bill defines unclaimed retirement distributions as unpaid obligations that remain unclaimed for either 90 days (during plan termination) or 12 months (for active plans), with a current cap of $5,000, which the Labor Secretary can adjust. The goal is to help reunite participants with forgotten retirement funds while providing a standardized, secure process for transferring these unclaimed assets.

Education

https://www.congress.gov/bill/119th-congress/house-bill/5325/all-info