,,ii #aagth ,,congress #ast ,session ,s4 #agcj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #bj1 #bjba,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 #bjba4 #b4 ,retirement savings lost and found 7a7 ,retirement ,savings ,lost and ,found 7#a7 ,establishment 7,a7 ,in general ,not later than #c years after the date of the enactment of this ,act1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,secretary of ,commerce1 in cooperation1 shall establish an online searchable database 7to be managed by the ,pension ,benefit ,guaranty ,corporation in accordance with section #djea of the ,employee ,retirement ,income ,security ,act of #aigd7 to be known as the ,retirement ,savings ,lost and ,found4 ,the ,retirement ,savings ,lost and ,found shall-- 7i7 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 or was a participant or beneficiary1 and to provide contact information for the plan administrator of any plan described in subparagraph 7,b72 7ii7 allow the corporation to assist such an individual in locating any plan of the individual2 and 7iii7 allow the corporation 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 subparagraph shall include information reported under section #djea of the ,employee ,retirement ,income ,security ,act of #aigd and other relevant information obtained by the ,pension ,benefit ,guaranty ,corporation4 7,b7 ,plans described ,a plan described in this subparagraph 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 7#b7 ,administration ,the ,retirement ,savings ,lost and ,found established under paragraph 7#a7 shall provide individuals described in paragraph 7#a77;,a7 only with the ability to view contact information for the plan administrator of any plan with respect to which the individual is or was a participant or beneficiary1 sufficient to allow the individual to locate the individual's plan in order to recover any benefit owing to the individual under the plan4 7#c7 ,safeguarding participant privacy and security ,in establishing the ,retirement ,savings ,lost and ,found under paragraph 7#a71 the ,pension ,benefit ,guaranty ,corporation1 in consultation with the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,secretary of ,commerce1 shall take all necessary and proper precautions 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 ,retirement ,savings ,lost and ,found at the election of the individual4 7b7 ,office of the ,retirement ,savings ,lost and ,found 7#a7 ,in general ,subtitle ,c of title ,,iv of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acda et seq47 is amended by adding at the end the following3 #djea4 ,office of the ,retirement ,savings ,lost and ,found 7a7 ,establishment2 responsibilities of ,office 7#a7 ,in general ,not later than #b years after the date of the enactment of this section1 the ,secretary of ,labor1 the ,secretary of the ,treasury1 and the ,secretary of ,commerce shall establish within the corporation an ,office of the ,retirement ,savings ,lost and ,found 7in this section referred to as the ,office74 7#b7 ,responsibilities of ,office 7,a7 ,in general ,the ,office shall-- 7i7 carry out subsection 7b7 of this section2 7ii7 maintain the ,retirement ,savings ,lost and ,found established under section #b7;a7 of the ,retirement ,savings ,lost and ,found ,act of #bjba2 and 7iii7 perform an annual audit of plan information contained in the ,retirement ,savings ,lost and ,found and ensure that such information is current and accurate4 7,b7 ,option to contract 7i7 ,in general ,not later than #b years after the date of enactment of this section1 the corporation shall conduct an analysis of the cost effectiveness of contracting with a third party to carry out the responsibilities under subparagraph 7,a77iii7 and1 upon a determination that such contracting would be more cost effective than carrying out such responsibilities within the ,office1 the corporation may enter into such contracts as merited by such analysis4 7ii7 ,report ,the corporation shall report on the results of the analysis under clause 7i7 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 ,representatives4 7b7 ,certain non-,responsive participants entitled to small benefits 7#a7 ,general rule 7,a7 ,transfer to the ,office of the ,retirement ,savings ,lost and ,found ,the administrator of a plan that is not terminated and to which section #dja7;a77#ca77;,b7 of the ,internal ,revenue ,code of #aihf applies shall transfer to the ,office the amount required to be transferred under section #dja7;a77#ca77;,b77iv7 of such ,code for a non-responsive participant4 7,b7 ,information and payment to the ,office ,upon making a transfer under subparagraph 7,a71 the plan administrator shall provide such information and certifications as the ,office shall specify1 including with respect to the transferred amount and the non-responsive participant4 7,c7 ,information requirements after transfer ,in the event that1 after a transfer is made under subparagraph 7,a71 the relevant non-responsive participant contacts the plan administrator or the plan administrator discovers information that may assist the ,office in locating the non-responsive participant1 the plan administrator shall notify and provide such information as the ,office shall specify to the ,office4 7,d7 ,search and payment by the ,office following transfer ,the ,office shall periodically1 and upon receiving information described in subparagraph 7,c71 conduct a search for the non-responsive participant for whom the ,office has received a transfer under subparagraph 7,a74 ,upon location of a non-responsive participant who claims benefits1 the ,office shall make a single payment to the non-responsive participant in an amount equal to the sum of-- 7i7 the amount transferred to the ,office under subparagraph 7,a7 for such participant2 and 7ii7 the return on the investment attributable to such amount under section #djje7;j77#c74 7#b7 ,definition ,for purposes of this subsection1 the term non-responsive participant means a participant or beneficiary of a plan described in paragraph 7#a77;,a7-- 7,a7 who is entitled to a benefit subject to a mandatory transfer under section #dja7;a77#ca77;,b77iii7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 for whom the plan has satisfied the conditions in section #dja7;a77#ca77;,b77iv7 of such ,code4 7#c7 ,regulatory ,authority ,the ,office shall prescribe such regulations as are necessary to carry out the purposes of this section1 including rules relating to the amount payable to the ,office and the amount to be paid by the ,office4 7c7 ,information collection ,within such period after the end of a plan year as the ,office may by regulations prescribe1 the administrator of a plan to which the vesting standards of section #bjc apply shall submit the following information1 and such other information as the corporation may require1 to the corporation in such form as the corporation may require3 7#a7 ,the information described in paragraphs 7#a7 through 7#d7 of section #fjeg7;b7 of the ,internal ,revenue ,code of #aihf4 7#b7 ,the information described in subparagraphs 7,a71 7,b71 7,e71 and 7,f7 of section #fjeg7;a77#b7 of the ,internal ,revenue ,code of #aihf4 7d7 ,effective date ,the requirements of subsections 7b7 and 7c7 shall apply with respect to plan years beginning after the second ,december #ca occurring after the date of the enactment of this section4 7e7 ,authorization of appropriations ,there are authorized to be appropriated such sums as may be necessary to carry out this section4 4 7#b7 ,establishment of fund for transferred assets ,section #djje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acje7 is amended by adding at the end the following3 7j7 7#a7 ,a ninth fund shall be established for the payment of benefits under section #djea7;b77#a77;,d74 7#b7 ,such fund shall be credited with the appropriate-- 7,a7 amounts transferred to the ,office of the ,retirement ,savings ,lost and ,found under section #djea7;b77#a77;,a72 and 7,b7 earnings on investments of the fund or on assets credited to the fund4 7#c7 ,whenever the corporation determines that the moneys of any fund are in excess of current needs1 it may request the investment of such amounts as it determines advisable by the ,secretary of the ,treasury in obligations issued or guaranteed by the ,united ,states4 4 7#c7 ,conforming amendment ,the table of contents for the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq47 is amended by inserting after the matter relating to section #djej the following3 ,sec4 #djea4 ,certain non-responsive participants entitled to small benefits4 4 7c7 ,mandatory transfers of rollover distributions 7#a7 ,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 #bjba1 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 ,office of the ,retirement ,savings ,lost and ,found in accordance with section #dja7;a77#ca77;,b77iv7 of the ,internal ,revenue ,code of #aihf and section #b7;c77#b77;,a77ii7 of the ,retirement ,savings ,lost and ,found ,act of #bjba2 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 subparagraph 7,a74 7#b7 ,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 ,distribution of larger amounts to individual retirement plans only ,section #dja7;a77#ca77;,b77i7 of such ,code is amended by adding at the end the following3 ,the ,office of the ,retirement ,savings ,lost and ,found established by section #b of the ,retirement ,savings ,lost and ,found ,act of #bjba shall not be treated as a trustee or issuer which is eligible to receive such distributions44 7,c7 ,lesser amounts ,section #dja7;a77#ca77;,b7 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 ,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 ,office of the ,retirement ,savings ,lost and ,found in accordance with section #djea7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd4 7v7 ,income tax treatment of transfers to ,retirement ,savings ,lost and ,found ,for purposes of determining the income tax treatment of transfers to the ,office 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 ,office of the ,retirement ,savings ,lost and ,found shall be treated as a distribution from an individual retirement plan4 4 7,d7 ,effective date ,the amendments made by this paragraph 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 7d7 ,better reporting for mandatory transfers 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 the current plan year or 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 and 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 added 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 and any year in which the information previously reported in subparagraph 7,b7 changes 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 ,pension ,benefit ,guaranty ,corporation 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 and1 with respect to any benefit of the individual subject to section #dja7;a77#ca77;,b71 a notice of availability of1 and the contact information for1 the ,retirement ,savings ,lost and ,found established under section #b7;a77#a7 of the ,retirement ,savings ,lost and ,found ,act of #bjba before the period at the end of the second sentence4 7#d7 ,effective date ,the amendments made by this paragraph 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 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,c7 ,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 paragraph 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 ,rulemaking ,to clarify fiduciary duties 7#a7 ,request for information ,not later than #a year after the date of enactment of this ,act1 the ,secretary of ,labor1 in consultation with the ,secretary of the ,treasury1 shall issue a request for information relating to the rulemaking described in paragraph 7#b74 7#b7 ,issuance of final rule ,not later than #c years after such date1 the ,secretary of ,labor1 in consultation with the ,secretary of the ,treasury1 shall issue a final rule that defines the following3 7,a7 ,the steps a plan sponsor must take to locate a deferred vested participant in order to meet its fiduciary duty under section #djd of the ,employee ,retirement ,income ,security ,act of #aigd with respect to locating that participant4 7,b7 ,the ongoing practices and procedures a plan sponsor must institute in order to meet such fiduciary duty with respect to maintaining up-to-date contact information on deferred vested participants4