A non-partisan law to create a national online database for retirement accounts was reintroduced in the Senate.
Sens. Elizabeth Warren, D-Mass., And Steve Daines, R-Mont., Reintroduced the Lost and Found Pension Act of 2021 on May 21st to help reduce the number of missing participants.
The bill, which Ms. Warren and Mr. Daines first introduced in 2016, would use data employers are already required to report to create the database, and plan sponsors would have to submit lost, unpaid checks of less than $ 1,000 to the Office of Retirement send Lost and Found – Savings that Treasury, Labor and Commerce secretaries instruct in the bill so individuals can find their money.
According to a press release, the bill also makes it easier for plan sponsors to move small accounts to age-appropriate funds by the deadline.
“Millions of Americans lose thousands each year in savings due to the loss of retirement plans from previous employers and other barriers to tracking multiple accounts,” Warren said in the press release. “Our bipartisan lost and lost pensions Act of 2021 is a wise step we can take now to help hardworking Americans build a little more security and retire with the dignity they deserve.”
Lawmakers pointed to a 2017 TIAA-CREF survey that estimated 30% of workers with their previous employers left retirement accounts, including 43% of Generation X and 35% of Millennials. From 2004 to 2013, from 2004 to 2013, there was $ 8.5 billion in retirement plans with assets of $ 5,000 or less, according to a 2014 report by the Government Accountability Office noted in the news release.
Groups like the Pension Rights Center, the American Benefits Council, and the ERISA Industry Committee have approved the bill.
“Currently, thousands of people turn to pension advisory projects and government agencies every year for help in finding their lost pensions,” said Karen Ferguson, president of the Pension Rights Center, in the press release. “This important bill will fill a critical and long-overlooked loophole in our country’s private pension system.”
The main bipartisan retirement security packages launched this month include provisions to establish a national online database of retirement accounts.