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.
Background on lost and found search tool
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.
Updated information request
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:
- Plan name as reported on the most recent Form 5500
- Plan administrator’s name, employer identification number (EIN), mailing address and telephone number
- Plan sponsor’s name, EIN and telephone number as reported on the most recent Form 5500
- Name and Social Security number of separated vested participants age 65 or older who are owed a vested benefit
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).
