In April of 2024, the U.S. Department of Labor (DOL) announced a proposal to collect information from plan administrators to establish an online search tool to help individuals locate potentially lost retirement benefits. The proposal was intended to implement parts of the SECURE 2.0 Act that directed the DOL to establish a Retirement Savings Lost and Found (L&F) database by December 29, 2024.
While the proposal was with the Office of Management and Budget (OMB) for review, the DOL published updated materials relating to the L&F database. Most notably the information being requested for terminated participants has been significantly scaled back and no longer includes benefits that have been transferred (e.g., to purchase an annuity). Also, the DOL will no longer use the Form 5500 EFAST system for reporting such information.
The DOL’s original proposal indicated that plan administrators could file information beginning with their 2023 Form 5500s. In its request to the OMB, the DOL simply states that plan administrators are to supply the information “at least annually.” In any case, once the OMB completes its review (which should be by October 15), the DOL will make the final instructions available.
The SECURE 2.0 Act directs the DOL to establish an online searchable database that individuals can use to help locate retirement benefits that are subject to the ERISA vesting standards. The intent is that missing participants can use the tool to locate contact information for: (1) a plan administrator to whom a claim for benefits can be made; (2) the designated trustee or issuer of any IRA where mandatory rollovers were deposited; and (3) the issuer of any distributed annuity contract issued by a plan.
In the updated materials on the L&F database, the DOL is asking plan administrators for information only on participants who have terminated employment with a vested benefit and are age 65 or older. Furthermore, the information requested would only include:
Note that the DOL is not asking for information about amounts transferred to automatic rollover IRAs or distributed annuities (e.g., pension risk transfer transactions).
The DOL is creating a dedicated website for recordkeepers to upload this information, which will be available at https://lostandfound-intake.dol.gov/ once the site is activated.
To address concerns about information security, the DOL states that extensive measures will be put in place to protect plan participant and beneficiary data, including data encryption, logging and monitoring mechanisms, and sensitive data masking techniques.
Information on the DOL revisions can be accessed in two ways via the OMB website:
As currently structured, providing data to the L&F database remains voluntary. Plan administrators, in consultation with the plans’ legal counsel, benefits consultants, recordkeepers and service providers, will have to decide whether they wish to participate. For a discussion on factors to consider, see the Insider article “DOL proposes voluntary Retirement Savings Lost and Found database reporting.” Note, however, that the updated proposal significantly reduces the time and effort needed to gather and submit information.
