Notice2024-07968
Proposed Information Collection Request Submitted for Public Comment; Retirement Savings Lost and Found
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 16, 2024
Issuing agencies
Labor DepartmentEmployee Benefits Security Administration
Abstract
The Department is proposing to collect information voluntarily in order to establish the Retirement Savings Lost and Found online searchable database described in section 523 of the Employee Retirement Income Security Act of 1974 (ERISA) and to connect missing participants and other individuals who have lost track of their retirement benefits with such benefits. The proposal solicits specific information from administrators of retirement plans subject to ERISA. Pursuant to the Paperwork Reduction Act of 1995 (PRA), the Department of Labor's Employee Benefits Security Administration (Department or EBSA) is soliciting comments on the proposed information collection request (ICR) described below.
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<title>Federal Register, Volume 89 Issue 74 (Tuesday, April 16, 2024)</title>
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[Federal Register Volume 89, Number 74 (Tuesday, April 16, 2024)]
[Notices]
[Pages 26932-26935]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-07968]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
Proposed Information Collection Request Submitted for Public
Comment; Retirement Savings Lost and Found
AGENCY: Employee Benefits Security Administration, Department of Labor.
ACTION: Notice.
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SUMMARY: The Department is proposing to collect information voluntarily
in order to establish the Retirement Savings Lost and Found online
searchable database described in section 523 of the Employee Retirement
Income Security Act of 1974 (ERISA) and to connect missing participants
and other individuals who have lost track of their retirement benefits
with such benefits. The proposal solicits specific information from
administrators of retirement plans subject to ERISA. Pursuant to the
Paperwork Reduction Act of 1995 (PRA), the Department of Labor's
Employee Benefits Security Administration (Department or EBSA) is
soliciting comments on the proposed information collection request
(ICR) described below.
DATES: Written comments must be submitted to the office shown in the
ADDRESSES section on or before June 17, 2024.
ADDRESSES: James Butikofer, U.S. Department of Labor, Employee Benefits
Security Administration, Office of Research and Analysis, 200
Constitution Avenue NW, N-5718, Washington, DC 20210, <a href="/cdn-cgi/l/email-protection#0c696e7f6d22637c7e4c686360226b637a"><span class="__cf_email__" data-cfemail="eb8e89988ac5849b99ab8f8487c58c849d">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Introduction and Summary of Burden
This notice requests public comment on the Department's proposed
collection of information from plan administrators of retirement plans
subject to ERISA for the purpose of establishing the Retirement Savings
Lost and Found online searchable database to reunite workers with
retirement benefits earned over their working lives and to help the
Department assist them in that effort. A summary of the current burden
estimates follows:
Agency: Employee Benefits Security Administration, U.S. Department
of Labor.
Title: Retirement Savings Lost and Found.
OMB Control Number: 1210-NEW.
Affected Public: Not-for-profit institutions, Businesses or other
for-profits.
Respondents: 359,368.
[[Page 26933]]
Responses: 359,368.
Estimated Total Burden Hours: 239,579.
Estimated Total Burden Cost (Operating and Maintenance): $0.
II. Description
A. Background
Section 303 of the SECURE 2.0 Act of 2022, which was enacted on
December 29, 2022 (SECURE 2.0),\1\ amended part 5 of subtitle B of
title I of ERISA to add Section 523, which requires the Department, not
later than 2 years after the date of enactment and in consultation with
the Secretary of the Treasury, to create an online searchable database,
to be known as the Retirement Savings Lost and Found. Among other
things, SECURE 2.0 requires that this database allow retirement savers
who may have lost track of their retirement plan to search for the
contact information of their plan administrator in order to make a
claim for benefits that may be owing to the individual under the plan.
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\1\ Consolidated Appropriations Act, 2023, H.R. 2617.
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Separate from the database required by SECURE 2.0, the Department
administers the Terminated Vested Participants Project (TVPP or missing
participant program). The TVPP has three key objectives for defined
benefit pension plans. First, to ensure these plans maintain adequate
census and other records necessary to determine (a) the identity and
address of participants and beneficiaries due benefits under the plan,
(b) the amount of benefits due under the plan, and (c) when
participants and beneficiaries are eligible to commence benefits.
Second, to ensure these plans have appropriate procedures for advising
participants with vested accrued benefits of their eligibility to apply
for benefits as they near normal retirement age and the date they must
start required minimum distributions under federal tax law. Third, to
ensure these plans implement appropriate search procedures for
terminated participants and beneficiaries for whom they have incorrect
or incomplete information. Since 2017, the Department has recovered
more than $6.7 billion for such ``missing'' participants and
beneficiaries.
The Department's experience indicates that retirement plan
administrators lose track of participants and beneficiaries, and
participants and beneficiaries lose track of their retirement benefits
for many reasons. For example, sometimes plans may be unable to
communicate with individuals who separated from service with deferred
vested benefits, or their designated beneficiaries, because of
inadequate recordkeeping practices, ineffective processes for
communicating with such participants and beneficiaries, and faulty
procedures for searching for participants and beneficiaries for whom
they have incorrect or incomplete contact information. In addition,
sometimes after workers change jobs, their former employers that
sponsor the retirement plans go out of business or go through corporate
events such as a merger, consolidation, or spinoff.
There is no more fundamental purpose of a retirement plan under
ERISA than paying promised benefits. See 29 U.S.C. 1001. Losing track
of individuals after long years of plan participation deprives workers
and their families their full earned retirement benefits. The
Department believes that it is united with plan sponsors and
administrators in the goal of making sure that workers and their
beneficiaries receive the retirement benefits they earned and were
promised. By providing the data requested by this proposed ICR to
enable the Department to establish and maintain the Retirement Savings
Lost and Found online searchable database, retirement plans will make
it more likely that promised benefits will be paid.
As an initial matter, the Department is seeking voluntary
participation in this proposed ICR. The Department had planned to use
data that plan administrators submitted to the Internal Revenue Service
(IRS) on Form 8955-SSA (Annual Registration Statement Identifying
Separated Participants With Deferred Vested Benefits). However, citing
concerns under section 6103 of the Internal Revenue Code (Code),\2\ IRS
has now indicated that it will not authorize the release of this data
to the Department for the purpose of communicating either directly with
participants and beneficiaries about retirement plans that may still
owe them retirement benefits or indirectly through the Retirement
Savings Lost and Found online searchable database. Accordingly, the
Department is proposing to request plan administrators to voluntarily
furnish the information specified below directly to the Department.
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\2\ See 26 U.S.C. 6103 (confidentiality and disclosure of
returns and return information).
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By collecting this data, the Department is optimistic that it can
work together with plan administrators to further reduce the number of
missing participants and promote the payment of promised benefits,
thus, helping plan administrators and other fiduciaries resolve issues
and inaccuracies in the plans' books and records, and better comply
with their fiduciary obligations.
B. Overview of Requested Data
This notice proposes to request that plan administrators (or their
authorized representatives, such as recordkeepers) voluntarily provide
the information described in sections III through V below. This
information is needed by the Department to establish the Retirement
Savings Lost and Found online searchable database no later than
December 29, 2024. The Retirement Savings Lost and Found online
searchable database will enable individuals to locate benefits they are
owed by providing them with contact information for their plan
administrator, the designated trustee or issuer described in section
401(a)(31)(B) of the Code, or the issuer of an annuity described in
section 523(e)(3)(C) of ERISA.
Section 523(e) of ERISA expressly authorizes the Department to
collect information described in sections 6057(b)(1) through (4) and
6057(a)(2)(A) and (B) of the Code. It also authorizes the Department to
collect the names and social security numbers of participants and
former participants described in Code section 6057(a)(2)(C) (i.e.,
individuals who separated from service covered under their plans and
who are entitled to deferred vested benefits) and identify those who
were fully paid their deferred vested benefits. Finally, it also
authorizes the Department to collect the names and social security
numbers of each participant or former participant in the plan with
respect to whom vested benefits were distributed under section
401(a)(31)(B) of the Code or to whom a deferred annuity contract was
distributed.
Much of the foregoing information is currently reported to the IRS
on Form 8955-SSA.\3\ The information reported on Forms 8955-SSA is
generally provided by the IRS to the Social Security Administration
(SSA). The SSA then provides the reported information to separated
vested participants when they file for social security benefits.
Pursuant to section 523(c) of ERISA, the Department consulted with the
Secretary of the Treasury and IRS on the Retirement Savings Lost and
Found online
[[Page 26934]]
searchable database and had planned to use the data reported on Form
8955-SSA to populate the database. As noted above, however, the IRS has
now declined to give this information to the Department to establish
and maintain the Retirement Savings Lost and Found online searchable
database, citing concerns under section 6103 of the Code.
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\3\ The Form 8955-SSA is the designated successor to Schedule
SSA (Form 5500). The Schedule SSA attachment to the Form 5500 was
the vehicle the IRS used to collect this information until the
Schedule SSA was replaced by the stand-alone IRS Form 8955-SSA.
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In addition to the data elements specifically described in section
523(e) of ERISA, the Department is asking for the voluntary submission
of additional data. The additional data requested consists mainly of
mailing addresses, email addresses, and telephone numbers of separated
vested participants and beneficiaries. It also includes an
identification of any separated vested participant of normal retirement
age or older owed a vested benefit, and who has been unresponsive to
plan communications about their vested benefits or whose contact
information the plan has reason to believe is no longer accurate. Based
on its experience with the missing participant program, the Department
believes this additional data may increase the efficiency and
effectiveness of locating missing participants. Although this proposed
ICR is voluntary, the Department notes that, in addition to the
specific grant of authority in section 523(e) of ERISA, mentioned
above, the Department has general authority to investigate and collect
information under other sections of ERISA, including sections 504 and
505 of ERISA, as well as to verify participants' and beneficiaries'
identities under the Retirement Savings Lost and Found online
searchable database. The Department further notes that, although this
proposed ICR does not impose any new recordkeeping requirements, the
Department expects plans that follow best practices will already have
much of this additional information on file.
Section 523(c) of ERISA, in relevant part, provides that in
establishing the Retirement Savings Lost and Found online searchable
database, the Department, in consultation with the Secretary of the
Treasury, shall take all necessary and proper precautions to ensure
that individuals' plan and personal information maintained by the
Retirement Savings Lost and Found online searchable database is
protected. Consistent with this provision, the Department will hold the
data specifically required by section 523(e) of ERISA secure, verify
the identity of participants and beneficiaries seeking access to the
data, and limit disclosure to carry out the purposes of section 523 of
ERISA. Section VI of this document describes the data security measures
in more detail.
To provide an easy and efficient process for plans to furnish the
information requested by this proposed ICR, the Department is proposing
that plan administrators would provide the information in an attachment
to their 2023 Form 5500 Annual Return/Report of Employee Benefit Plan
or 2023 Form 5500-SF Short Form Annual Return/Report of Small Employee
Benefit Plan, as applicable, (collectively Form 5500) using the all-
electronic ERISA Filing Acceptance System (EFAST2). The information
would be filed with the Form 5500 in accordance with instructions in
EFAST2. Although the information would be submitted through EFAST2
along with the plan's Form 5500, the attachment itself would not be
considered part of the Form 5500 annual report filing for purposes of
Title I of ERISA. As the agency moves forward with the program, it is
looking into providing other simple and efficient means of furnishing
the data to the Retirement Savings Lost and Found online searchable
database.
Finally, in an effort to establish the most effective Retirement
Savings Lost and Found online searchable database possible, this
proposed ICR asks for specific information dating back to the date a
covered plan became subject to ERISA. The Department recognizes that
some plans may not have retained such historical data. Nevertheless, to
the extent that information is available, the Department encourages
plan administrators to provide historic information from the date the
plan first became subject to ERISA or as far back as possible, if
shorter.
III. Plans With Separated Vested Participants
For any plan with a participant or former participant described in
26 U.S.C. 6057(a)(2)(C) (``separated vested participant''), provide the
following information with respect to that plan:
1. Name and plan number of plan as reflected on the most recent
Form 5500 Annual Return/Report of Employee Benefit Plan or Form 5500-SF
Short Form Annual Return/Report of Employee Benefit Plan (individually
and collectively ``Form 5500''). If the plan had names other than the
name on the most recent Form 5500, provide the prior names and plan
numbers and include the date of change.
2. Name, employer identification number (EIN), mailing address, and
telephone number of the plan administrator as reflected on the most
recent Form 5500. If the plan had plan administrators other than the
plan administrator on the most recent Form 5500, provide the names and
EINs of the prior plan administrators and include the date of change.
3. Name, EIN, mailing address, and telephone number of the plan
sponsor as reflected on the most recent Form 5500, if different than
the plan administrator. If the plan had plan sponsors other than the
plan sponsor on the most recent Form 5500, provide the names and EINs
of the prior plan sponsors and include the date of change.
4. Name, date of birth, mailing address, email address, telephone
number, and social security number (SSN) of each separated vested
participant.
5. Nature, form, and amount of benefit of each separated vested
participant.
6. If the vested benefit of each such separated vested participant
was fully paid in a form other than an annuity (i.e., lump sum payout)
to the separated vested participant, provide the date and the amount of
the distribution.
7. If an annuity form of benefit, state whether the separated
vested participant has begun receiving benefits, the date of the
annuity commencement, and the monthly benefit.
8. Name, date of birth, mailing address, email address, telephone
number, and SSN of any separated vested participant of normal
retirement age or older that is owed a vested benefit, and who has been
unresponsive to plan communications about their benefits or whose
contact information as set forth in paragraph 4 above, the plan has
reason to believe is no longer accurate.
9. Name, date of birth, mailing address, email address, telephone
number, and SSN of any designated beneficiary of the separated vested
participant.
10. With respect to any participant whose benefit was transferred
to the plan in the manner described in Line 9 of the Form 8955-SSA,
provide the name and plan number of the transferor plan. Include the
date of transfer to the plan.
IV. Plans That Distributed Benefits Under Section 401(a)(31)(B) of the
Internal Revenue Code
For any plan that distributed benefits under section 401(a)(31)(B)
of the Code, provide the following information with respect to the
plan:
1. Name of plan and plan number as reflected on the most recent
Form 5500. If the plan had names other than the name on the most recent
Form 5500, provide the prior names and plan numbers to include the date
of change.
[[Page 26935]]
2. Name, EIN, mailing address, and telephone number of the plan
administrator as reflected on the most recent Form 5500. If the plan
had plan administrators other than the plan administrator on the most
recent Form 5500, provide the names and EINs of the prior plan
administrators and include the date of change.
3. Name, EIN, mailing address, and telephone number of the plan
sponsor as reflected on the most recent Form 5500, if different than
the plan administrator. If the plan had plan sponsors other than the
plan sponsor on the most recent Form 5500, provide the names and EINs
of the prior plan sponsors and include the date of change.
4. Name, date of birth, mailing address, email address, telephone
number and SSN of each participant or former participant with respect
to whom any amount of the vested benefit was distributed under section
401(a)(31)(B) of the Code.
5. With respect to such participant or former participant, the name
of the designated trustee or issuer described in section 401(a)(31)(B)
of the Code.
6. With respect to such participant or former participant, the
address of the designated trustee or issuer described in section
401(a)(31)(B) of the Code.
7. With respect to such participant or former participant, the
amount of the distribution.
8. With respect to such participant or former participant, the
account number of the individual retirement plan to which the amount
was distributed.
9. With respect to such participant or former participant, the
name, date of birth, mailing address, email address, telephone number,
and SSN of any designated beneficiary.
V. Plans That Distributed Annuities
For any plan that distributed benefits pursuant to an annuity
contract described in 29 CFR 2510.3-3(d)(2)(ii), provide the following
information with respect to the plan:
1. Name and plan number of plan as reflected on the most recent
Form 5500. If the plan had names other than the name on the most recent
Form 5500, provide the prior names and plan numbers to include the date
of change.
2. Name, EIN, mailing address, and telephone number of the current
plan administrator as reflected on the most recent Form 5500. If the
plan had plan administrators other than the plan administrator on the
most recent Form 5500, provide the names and EINs of the prior plan
administrators and include the date of change.
3. Name, EIN, mailing address, and telephone number of plan sponsor
as reflected on the most recent Form 5500, if different than the plan
administrator. If the plan had plan sponsors other than the plan
sponsor on the most recent Form 5500, provide the names and EINs of the
prior plan sponsors and include the date of change.
4. Name, date of birth, SSN, mailing address, email address, and
telephone number of each participant or former participant with respect
to whom an annuity contract, described in 29 CFR 2510.3-3(d)(2)(ii),
was distributed.
5. With respect to such participant or former participant, the name
of the issuer of the annuity contract.
6. With respect to such participant or former participant, the
address of the issuer of the annuity contract.
7. With respect to such participant or former participant, the
contract or certificate number.
8. With respect to such participant or former participant, the
name, date of birth, mailing, address, email address, telephone number,
and SSN of any designated beneficiary.
VI. Method of Transmitting Data
To minimize public burden, plan administrators (or their authorized
representatives, such as recordkeepers) will be able to electronically
submit this data described in this proposed ICR as an attachment to
this year's EFAST2 filing. The Department also is looking to establish
a portal for plan administrators to submit the information directly
into the Lost and Found database as an alternative to submitting the
information as an attachment to the Form 5500 using EFAST2. The
Department will provide the spreadsheet file template (CSV format), and
intends to make available a model format that plan administrators could
use to submit the information.
Multiple security measures will be in place to protect plan
participant and beneficiary data (i.e., Social Security numbers) in the
Department's Lost and Found online searchable database. A public user
will have no access to sensitive data. Government access to the data
will also be strictly controlled, which will be encrypted both at rest
and in transit. The database will implement extensive logging and
monitoring mechanisms, and sensitive data masking techniques will be
implemented to mask personally identifiable information.
VII. Focus of Comments
The Department is particularly interested in comments that:
<bullet> Evaluate whether the collections of information are
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
<bullet> Evaluate the accuracy of the agency's estimate of the
collections of information;
<bullet> Enhance the quality, utility, and clarity of the
information to be collected; and
<bullet> Minimize the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology, e.g., by
permitting electronic submissions of responses.
Comments submitted in response to this notice will be summarized
and/or included in the ICRs for OMB approval of the information
collection; they will also become a matter of public record.
Signed in Washington, DC, on April 9, 2024.
Lisa M. Gomez,
Assistant Secretary, Employee Benefits Security Administration, U.S.
Department of Labor.
[FR Doc. 2024-07968 Filed 4-15-24; 8:45 am]
BILLING CODE 4510-29-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.