DOL Retirement Savings Lost and Found Database Begins Voluntary Data Collection Process

On November 18, 2024, the U.S. Department of Labor (DOL), through its Employee Benefits Security Administration (EBSA), announced that it will immediately begin collecting information from retirement plan (including 401(k) plan) administrators in order to help establish and maintain a new “Retirement Savings Lost and Found” online searchable database.

The DOL/EBSA also released a fact sheet generally summarizing the announcement.

The database, a creation of the SECURE 2.0 Act (SECURE 2.0), is intended to help connect “missing” participants and beneficiaries, or other individuals who may have lost track of their retirement benefits, with the retirement plans that may be holding these benefits. At this time, the database will rely upon plan administrators to populate the data presented in the online search tool, and data collection from plan administrators is, at present, strictly voluntary.

Some Background:

SECURE 2.0 directed the DOL, in consultation with the IRS, to create an online searchable by no later than December 29, 2022 (see our blog 401(K): What Do I Need To Know About SECURE 2.0? Overview Of Significant Provisions, Part II – capstone for details).

The statute called for the DOL to collect certain enumerated data, much of which was anticipated to be readily available via IRS Form 8955-SSA – Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits. But in April 2024, the DOL announced that, because of concerns that the IRS may not be legally permitted to share data taken from form 8955-SSA, information for the database would instead need to be obtained directly from plan administrators on a voluntary basis.

What’s In the Announcement?

The announcement states that, as of November 18, 2024, the DOL is accepting limited, voluntary data from plan administrators to begin populating the Retirement Savings Lost and Found database as a first step towards making the database available to the public. Notably, the DOL acknowledges that these initial data collection efforts will not be enough to accomplish the databases’ long-term goals, and that the agency is chiefly focused now on those individuals who are nearing retirement.

Among the specific questions addressed in the announcement are the following:

Who Should Submit Information? Information should be submitted by 401(k) plan administrators (or their duly authorized third-party administrators; for example, recordkeepers or similar administrative service providers).

What Information Should Be Submitted? Providers are requested to submit basic information about the 401(k) plan and about individuals who may be owed benefits under the plan; specifically, the following:

• The full name and plan number of the plan, as reflected on the most recent Form 5500 series filing;
• Name, employer identification number (EIN), mailing address, and telephone number of the plan administrator, as reflected on the most recent Form 5500;
• ·Name, EIN, and telephone number of the plan sponsor, as reflected on the most recent Form 5500; and
• Name and Social Security Number of any separated vested participant aged 65 or older who is owed a vested benefit. This includes:
  • Deceased participants who would have been age 65 or older if they had survived, and whose beneficiary is entitled to a benefit; and
  • Separated vested participants aged 65 or older who are in pay status.
    

When Should the Information Be Submitted? Initial submissions should be made as soon as possible before December 29, 2024, and should be updated at least annually thereafter (more frequent updates, such as quarterly, are encouraged).

• When providing updates, submitters should identify individuals who were previously reported but who have since been fully paid, along with the date of payment.

How and Where Do I Submit the Information? EBSA has provided the following step-by-step guide:

• STEP ONE: Use the Lost and Found Upload Template, available, with instructions, at https://lostandfound-intake.dol.gov/template.xlsx
• STEP TWO: File directly with the Lost and Found Database at https://lostandfound-intake.dol.gov/. Submitters must have a Login.gov account and create a user profile

Miscellaneous Provisions. The announcement also generally addresses other related issues, including the following:

• Fiduciary Duty to Mitigate Cybersecurity Risk: the DOL stated that submission of data in accordance with the instructions and processes described in the announcement will not violate a fiduciary’s duty to mitigate cybersecurity risks.
• Fiduciary Duty and State Privacy Laws: the DOL deflected concerns about state laws that commenters asserted would prevent disclosure of participant data without the participant’s consent. The announcement did not reference any specific state laws and the DOL observed that it was unclear whether any such laws would apply to the circumstances in question. In any event, the DOL invited persons with specific issues to contact it directly.
• Use of Plan Assets to Pay Cost of Voluntary Reporting: the DOL assured fiduciaries that the reasonable cost of reporting the data is a permissible use of plan assets.

Effective Date. Although data may be submitted now, under SECURE 2.0, the Retirement Savings Lost and Found database is scheduled to be up and running by no later than December 29, 2024. The usefulness of the database will no doubt be enhanced once more and more plan administrators begin providing the data needed to populate the online tool

DISCLAIMER:

This article is not meant to offer a detailed analysis of the DOL/EBSA announcement, or the legal rules relating to 401(k) plans, procedures for locating “missing participants,” SECURE 2.0 requirements, or other rules applicable to 401(k) plans or other types of retirement plans (such as defined benefit plans, governmental plans, individual retirement accounts or 403(b) plans), or health and welfare benefit plans. As always, be sure to consult with your own ERISA attorney or other professional advisor for individualized advice with respect to your plan’s unique situation.