,,ii #aafth ,,congress #b;d ,session ,s4 #daib ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #b1 #bjbj,ms4 ,warren 7for herself and ,mr4 ,daines7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to increase portability of and access to retirement savings1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,retirement ,savings ,lost and ,found ,act of #bjbj4 #b4 ,retirement ,savings ,lost and ,found 7a7 ,establishment 7#a7 ,in general ,not later than #b years after the date of the enactment of this ,act1 the ,commissioner of ,social ,security and the ,secretary of the ,treasury in cooperation shall establish an online mechanism to be known as the ,retirement ,savings ,lost and ,found1 to be managed by the ,director of the ,retirement ,savings ,lost and ,found established under section #d of this ,act-- 7,a7 to allow an individual to search for information that enables the individual to locate the plan administrator of any plans with respect to which the individual is a participant or beneficiary1 and to provide contact information for the plan administrator of any plan described in paragraph 7#b7 with respect to which the individual may be entitled to a benefit2 7,b7 to allow such ,director to assist such an individual in locating any plan of the individual2 and 7,c7 to allow such ,director to make any necessary changes to contact information on record for the plan administrator based on any changes to the plan due to merger or consolidation of the plan with any other plan1 division of the plan into two or more plans1 bankruptcy1 termination1 change in name of the plan1 change in name or address of the plan administrator1 or other causes4 ,the ,retirement ,savings ,lost and ,found established under this paragraph shall contain the information obtained by the ,commissioner of ,social ,security regarding deferred vested benefits under section #fjeg of the ,internal ,revenue ,code of #aihf 7including information so obtained before the date of the enactment of this ,act74 ,such information shall be retained in the ,retirement ,savings ,lost and ,found in perpetuity4 7#b7 ,plans described ,a plan described in this paragraph is a plan to which the vesting standards of section #bjc of part #b of subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd apply4 7b7 ,administration ,the ,retirement ,savings ,lost and ,found established under subsection 7a7 shall provide individuals described in subsection 7a77#a7 only with the ability to view contact information for the plan administrator of any plan with respect to which the individual is a participant or beneficiary1 sufficient to allow the individual to locate the individual's plan4 7c7 ,current information 7#a7 ,in general ,paragraph 7#b7 of section #fjeg7;a7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in subparagraph 7,c7-- 7i7 by striking during such plan year in clause 7i7 and inserting during the plan year immediately preceding such plan year2 7ii7 by adding and at the end of clause 7i72 and 7iii7 by striking clause 7iii72 7,b7 by redesignating subparagraph 7,e7 as subparagraph 7,g72 7,c7 by striking and at the end of subparagraph 7,d72 and 7,d7 by inserting after subparagraph 7,d7 the following new subparagraphs3 7,e7 the name and taxpayer identifying number of each participant or former participant in the plan-- 7i7 who1 during any previous plan year1 was reported under subparagraph 7,c71 and with respect to whom the benefits described in subparagraph 7,c77ii7 were fully paid during the plan year1 7ii7 with respect to whom any amount was distributed under section #dja7;a77#ca77;,b7 during the plan year1 or 7iii7 with respect to whom a deferred annuity contract was distributed during the plan year1 7,f7 in the case of a participant or former participant to whom subparagraph 7,e7 applies-- 7i7 in the case of a participant described in clause 7ii7 thereof1 the name and address of the designated trustee or issuer described in section #dja7;a77#ca77;,b77i7 and the account number of the individual retirement plan to which the amount was distributed1 and 7ii7 in the case of a participant described in clause 7iii7 thereof1 the name and address of the issuer of such annuity contract and the contract or certificate number1 and 4 7#b7 ,rules relating to direct trustee-to-trustee transfers 7,a7 ,in general ,paragraph 7#f7 of section #djb7;e7 of such ,code is amended-- 7i7 by striking transfers4--,any and inserting 8transfers4-- 7,a7 ,in general ,any 2 and 7ii7 by adding at the end the following new subparagraph3 7,b7 ,notification of trustee ,in the case of a distribution under section #dja7;a77#ca77;,b71 the plan administrator shall notify the designated trustee or issuer described in clause 7i7 thereof that the transfer is a mandatory distribution required by such section4 4 7,b7 ,penalty ,subsection 7i7 of section #ffeb of such ,code is amended-- 7i7 by striking to recipients in the heading and inserting or notification2 7ii7 by striking #djb7;f71 and inserting #djb7;f7 or a notification as required by section #djb7;e77#f77;,b712 and 7iii7 by striking such written explanation and inserting such written explanation or notification4 7,c7 ,reports ,subsection 7i7 of section #djh of such ,code is amended-- 7i7 by redesignating subparagraphs 7,a7 and 7,b7 of paragraph 7#b7 as clauses 7i7 and 7ii71 respectively1 and by moving such clauses #b ems to the right2 7ii7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively1 and by moving such subparagraphs #b ems to the right2 7iii7 by striking as the ,secretary prescribes in subparagraph 7,b77ii71 as so redesignated1 and all that follows through a simple retirement account and inserting 8as the ,secretary prescribes4 7#c7 ,simple retirement accounts ,in the case of a simple retirement account 2 7iv7 by striking ,reports4--,the trustee of and inserting 8,reports4-- 7#a7 ,in general ,the trustee of 2 7v7 by striking under paragraph 7#b7 in paragraph 7#c71 as redesignated by clause 7iii71 and inserting under paragraph 7#a77;,b72 and 7vi7 by inserting after paragraph 7#a77;,b77ii71 as redesignated by the preceding clauses1 the following new paragraph3 7#b7 ,mandatory distributions ,in the case of an account1 contract1 or annuity to which a transfer under section #dja7;a77#ca77;,b7 is made 7including a transfer from the individual retirement plan to which the original transfer under such section was made to another individual retirement plan71 the report required by this subsection for the year of the transfer shall-- 7,a7 identify such transfer as a mandatory distribution required by such section1 7,b7 include the name1 address1 and taxpayer identifying number of the trustee or issuer of the individual retirement plan to which the amount is transferred1 and 7,c7 be filed with the ,director of the ,retirement ,savings ,lost and ,found established under section #b7;a7 of the ,retirement ,savings ,lost and ,found ,act of #bjbj as well as with the ,secretary4 4 7#c7 ,notification of participants upon separation ,subsection 7e7 of section #fjeg of such ,code is amended by inserting 1 and a notice of the availability of the ,retirement ,savings ,lost and ,found established under section #b7;a7 of the ,retirement ,savings ,lost and ,found ,act of #bjbj before the period at the end of the second sentence4 7#d7 ,effective date ,the amendments made by this subsection shall apply to distributions made in1 and returns and reports relating to1 years beginning after the second ,december #ca occurring after the date of the enactment of this ,act4 7d7 ,coordination with distribution requirements1 fiduciary duties1 etc 7#a7 ,amendment of ,internal ,revenue ,code of #aihf ,paragraph 7#i7 of section #dja7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,i7 ,coordination with ,retirement ,savings ,lost and ,found 7i7 ,in general ,with respect to any lost or missing participant of a plan1 the plan shall not be treated as failing to satisfy the requirements of this paragraph or any other requirement of this title which cannot be satisfied due to the plan's inability to locate the participant4 7ii7 ,lost or missing participant ,not later than #a year after the date of the enactment of this subparagraph1 the ,secretary 7in consultation with the ,commissioner of ,internal ,revenue71 the ,secretary of ,labor 7in consultation with the ,assistant ,secretary of ,labor for the ,employee ,benefits ,security ,administration71 and the ,pension ,benefit ,guaranty ,corporation shall issue joint guidance defining the term lost or missing participant for purposes of this subparagraph4 4 7#b7 ,amendment of ,employee ,retirement ,income ,security ,act of #aigd 7,a7 ,in general ,section #djd of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7 is amended by adding at the end the following new subsection3 7f7 ,coordination with ,retirement ,savings ,lost and ,found 7#a7 ,in general ,with respect to any lost or missing participant of a plan1 a fiduciary of the plan shall not be treated as failing to satisfy any requirement to search for or attempt to locate1 or to provide any document or information to1 such individual1 or any other requirement of this title which cannot be satisfied due to the plan's inability to locate the participant4 7#b7 ,lost or missing participant ,not later than #a year after the date of the enactment of this subparagraph1 the ,secretary 7in consultation with the ,assistant ,secretary of ,labor for the ,employee ,benefits ,security ,administration71 the ,secretary of the ,treasury 7in consultation with the ,commissioner of ,internal ,revenue71 and the ,pension ,benefit ,guaranty ,corporation shall issue joint guidance defining the term lost or missing participant for purposes of this subsection4 4 7,b7 ,conforming amendments ,section #djej7;a77#a77;,b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acej7;a77#a77 is amended-- 7,c7 in subparagraph 7,b7-- 7i7 by striking provides and inserting 8either-- 7i7 provides 2 7ii7 by striking the period at the end and inserting 2 or2 and 7iii7 by adding at the end the following new clause3 7ii7 satisfies the requirements of section #fjeg7;a7 of the ,internal ,revenue ,code of #aihf4 4 7e7 ,requirement of electronic filing 7#a7 ,in general ,paragraph 7#b7 of section #fjaa7;e7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively1 and by moving such clauses #b ems to the right2 7,b7 by striking regulations4--,in prescribing and inserting 8regulations4-- 7,a7 ,in general ,in prescribing 2 and 7,c7 by adding at the end the following new subparagraph3 7,b7 ,exceptions ,notwithstanding subparagraph 7,a71 the ,secretary shall require returns or reports required under-- 7i7 sections #fjeg1 #fjeh1 and #fjei1 and 7ii7 sections #djh7;i71 #fjda1 and #fjdg to the extent such return or report relates to the tax treatment of a distribution from a plan1 account1 contract1 or annuity1 to be filed on magnetic media1 but only with respect to persons who are required to file at least #ej returns during the calendar year which includes the first day of the plan year to which such returns or reports relate4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to returns and reports relating to years beginning after the second ,december #ca occurring after the date of the enactment of this ,act4 7f7 ,safeguarding participant privacy and security ,in establishing the ,retirement ,savings ,lost and ,found under subsection 7a71 the ,commissioner of ,social ,security and the ,secretary of the ,treasury shall take all necessary and proper precautions1 including consulting with the ,secretary of ,health and ,human ,services1 to ensure that individuals' plan information maintained by the ,retirement ,savings ,lost and ,found is protected and that persons other than the individual cannot fraudulently claim the benefits to which any individual is entitled1 and to allow any individual to opt out of inclusion in the ,lost and ,found at the election of the individual4 7g7 ,conforming amendment ,subparagraph 7,b7 of section #fajc7l77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking responsibility under section #aaca of the ,social ,security ,act and inserting responsibilities under section #aaca of the ,social ,security ,act and section #b7;a77#a7 of the ,retirement ,savings ,lost and ,found ,act of #bjbj4 7h7 ,authorization of appropriations ,there are authorized to be appropriated such sums as may be necessary to carry out the purposes of this section4 #c4 ,mandatory transfers of rollover distributions 7a7 ,investment options 7#a7 ,in general ,subparagraph 7,b7 of section #djd7;c77#c7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;c77#c77 is amended by striking the period at the end and inserting 81 and1 to the extent the ,secretary provides in guidance or regulations issued after the enactment of the ,retirement ,savings ,lost and ,found ,act of #bjbj1 is made to-- 7i7 a target date or life cycle fund held under such account2 7ii7 as described in section #beej4djd;a-#b of title #bi1 ,code of ,federal ,regulations1 an investment product held under such account designed to preserve principal and provide a reasonable rate of return2 7iii7 the ,director of the ,retirement ,savings ,lost and ,found for investment in accordance with section #d7;b77#a77;,b7 of the ,retirement ,savings ,lost and ,found ,act of #bjbj1 or an individual retirement account 7as defined in section #djh7;a7 of such ,code7 established by the ,secretary of the ,treasury on behalf of the participant or beneficiary1 but only if all applicable reporting requirements are met with respect to such transfer2 or 7iv7 such other option as the ,secretary may so provide4 4 7#b7 ,regulations ,not later than #bgj days after the date of the enactment of this ,act1 the ,secretary of ,labor shall promulgate regulations identifying the target date or life cycle funds1 or specifying the characteristics of such a fund1 that will be deemed to meet the requirements of section #djd7;c77#c77;,b77i7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;c77#c77;,b771 as amended by paragraph 7#a74 7b7 ,expansion of cap2 authority ,to transfer lesser amounts 7#a7 ,cap ,sections #dja7;a77#ca77;,b77ii7 and #daa7;a77#aa77;,a7 of the ,internal ,revenue ,code of #aihf and section #bjc7;e77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd are each amended by striking #e1jjj and inserting #f1jjj4 7#b7 ,lesser amounts ,subparagraph 7,b7 of section #dja7;a77#ca7 of such ,code is amended by adding at the end the following new clauses3 7iii7 ,treatment of lesser amounts ,in the case of a trust which is part of an eligible plan1 such trust shall not be a qualified trust under this section unless such plan provides that1 if a participant in the plan separates from the service covered by the plan and the nonforfeitable accrued benefit described in clause 7ii7 is not in excess of #a1jjj1 the plan administrator shall 7either separately or as part of the notice under section #djb7;f77 notify the participant that the participant is entitled to such benefit or attempt to pay the benefit directly to the participant4 7iv7 ,transfers to ,retirement ,savings ,lost and ,found or ,treasury ,if1 after a plan administrator takes the action required under clause 7iii71 the participant does not-- 7,i7 within #f months of the notification under such clause1 make an election under subparagraph 7,a7 or elect to receive a distribution of the benefit directly1 or 7,,ii7 accept any direct payment made under such clause within #f months of the attempted payment1 the plan administrator shall transfer the amount of such benefit to the ,director of the ,retirement ,savings ,lost and ,found established under section #d of the ,retirement ,savings ,lost and ,found ,act of #bjbj or to an individual retirement account 7as defined in section #djh7;a77 established by the ,secretary on behalf of the individual4 7v7 ,income tax treatment of transfers to ,retirement ,savings ,lost and ,found ,for purposes of determining the income tax treatment of transfers to the ,director of the ,retirement ,savings ,lost and ,found under clause 7iv7-- 7,i7 such a transfer shall be treated as a transfer to an individual retirement plan under clause 7i71 and 7,,ii7 the distribution of such amounts by the ,director of the ,retirement ,savings ,lost and ,found shall be treated as a distribution from an individual retirement plan4 4 7#c7 ,effective date ,the amendments made by this subsection shall apply to vested benefits with respect to participants who separate from service connected to the plan in plan years beginning after the second ,december #ca occurring after the date of the enactment of this ,act4 7#d7 ,rule of construction ,nothing in this ,act shall be interpreted to prohibit a plan administrator from transferring the accounts of missing participants to the ,pension ,benefit ,guaranty ,corporation pursuant to section #djej of the ,employee ,retirement ,income ,security ,act of #aigd4 #d4 ,office of the ,retirement ,savings ,lost and ,found 7a7 ,in general ,not later than one year after the date of the enactment of this ,act1 the ,commissioner of ,social ,security and the ,secretary of the ,treasury shall establish within the appropriate agency or subdivision thereof an ,office of the ,retirement ,savings ,lost and ,found1 to be administered by a ,director of the ,retirement ,savings ,lost and ,found who 7without regard to the agency or subdivision where such ,office is established7 shall report to both such ,commissioner and such ,secretary4 7b7 ,responsibilities of ,director 7#a7 ,in general ,in addition to administering the ,retirement ,savings ,lost and ,found under section #b and carrying out the duties described in subparagraphs 7,b7 and 7,c7 of section #b7;a77#a71 the ,director of the ,retirement ,savings ,lost and ,found established under this section shall-- 7,a7 perform an annual audit of plan information contained in the ,retirement ,savings ,lost and ,found and ensure that such information is current and accurate2 7,b7 invest any amount transferred under section #dja7;a77#ca77;,b77iv7 of the ,internal ,revenue ,code of #aihf in ,united ,states ,treasury securities2 and 7,c7 upon application filed by the participant or beneficiary in such form and manner as may be prescribed in regulations1 pay to the participant or beneficiary the amount transferred 7or the appropriate survivor benefit7 either-- 7i7 in a single sum 7plus interest72 or 7ii7 in such other form as is specified in regulations2 and 7,d7 identify such amount as eligible to be paid into an eligible retirement plan described in section #djb7;c77#h77;,b7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,option to contract ,the ,director of the ,retirement ,savings ,lost and ,found shall conduct an analysis of the cost effectiveness of contracting with a third party to carry out the responsibilities under paragraph 7#a7 and1 if the ,director determines that it would be more cost effective to do so than to carry out such responsibilities within the ,office of the ,retirement ,savings ,lost and ,found1 the ,director shall report to the ,committees on ,finance and ,health1 ,education1 ,labor1 and ,pensions of the ,senate and the ,committees on ,ways and ,means and ,education and ,labor of the ,house of ,representatives the intention to so contract4 7#c7 ,option to prescribe protocols ,the ,director of the ,retirement ,savings ,lost and ,found may establish protocols to assist participants originally treated as lost or missing in claiming their benefits under a plan4 7#d7 ,coordination ,the ,director of the ,retirement ,savings ,lost and ,found shall coordinate with the ,pension ,benefit ,guaranty ,corporation and other applicable agencies to integrate information and databases on lost1 missing1 and inactive participants4