A bipartisan invoice to create a nationwide on-line lost-and-found database for retirement accounts has been reintroduced within the Senate.
Sens. Elizabeth Warren, D-Mass., and Steve Daines, R-Mont., reintroduced the Retirement Financial savings Misplaced and Discovered Act of 2021 on Might 21, in an effort to cut back the variety of lacking members.
The invoice, which Ms. Warren and Mr. Daines first launched in 2016, would use knowledge that employers are already required to report back to create the database and would require plan sponsors to ship misplaced, uncashed checks of lower than $1,000 to the Workplace of Retirement Financial savings Misplaced and Discovered — which the invoice directs the secretaries of Treasury, Labor and Commerce to create — in order that people can find their cash.
Additionally, the invoice makes it simpler for plan sponsors to maneuver small accounts into age-appropriate target-date funds, in accordance with a information launch.
“Hundreds of thousands of Individuals lose 1000’s in financial savings every year due to misplaced retirement plans from earlier employers and different roadblocks to monitoring a number of accounts,” Ms. Warren stated within the information launch. “Our bipartisan Retirement Financial savings Misplaced and Discovered Act of 2021 is a common sense step we are able to take now to assist hard-working Individuals construct a bit of extra safety and retire with the dignity they deserve.”
The lawmakers pointed to a 2017 TIAA-CREF survey that estimated 30% of workers left retirement accounts at their earlier employers, together with 43% of Technology X and 35% of millennials. Additionally, from 2004 to 2013, there was $8.5 billion sitting in misplaced retirement plans with balances of $5,000 or much less, in accordance with a 2014 Authorities Accountability Workplace report famous within the information launch.
Teams just like the Pension Rights Middle, American Advantages Council and ERISA Trade Committee have endorsed the invoice.
“At present, 1000’s of people contact pension counseling initiatives and authorities businesses every year in search of assist in discovering their misplaced pensions,” Karen Ferguson, president of the Pension Rights Middle stated within the information launch. “This necessary invoice will shut a crucial and too-long-overlooked hole in our nation’s non-public retirement system.”
Main bipartisan retirement safety packages launched this month Home and Senate embrace provisions that might set up nationwide on-line lost-and-found database for retirement accounts.