January 6, 2025

DOL Launches Voluntary Retirement Savings Lost and Found

Millions of Americans leave behind retirement accounts every year due to job changes, incomplete records, or failing to roll over funds. An estimated 29.2 million forgotten 401(k) accounts hold approximately $1.65 trillion in assets. In response to this growing issue, the Department of Labor (DOL) created the Retirement Savings Lost and Found (RSLF) database under the SECURE 2.0 Act of 2022. 

On November 18, 2024, the DOL launched a Voluntary Information Collection Request (ICR) to start building the database. This initiative encourages plan sponsors to submit participant and plan data, forming the foundation for an online system that reconnects individuals with lost retirement savings. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key information below.

What Is the RSLF Database?

The Retirement Savings Lost and Found (RSLF) is a federally managed, online database designed to reconnect individuals with retirement benefits they may have forgotten. Mandated under Section 523 of the Employee Retirement Income Security Act (ERISA), the RSLF simplifies the process of locating retirement accounts by centralizing participant and plan data.

Initially, the database will focus on individuals ages 65 and older who have separated from service, with plans to expand over time to include a broader range of participants and retirement accounts. This approach mirrors the success of state unclaimed property programs, which have successfully reunited individuals with lost financial assets like bank accounts and uncashed checks. By applying a similar model to retirement savings, the RSLF aims to address a critical gap in helping individuals recover earned benefits.

How Does It Work?

The RSLF functions as a secure and accessible tool for both participants and plan administrators. Participants can search the database to locate lost accounts and connect with the appropriate plan administrator.

For plan administrators, the DOL has developed a secure web portal for data submissions. Administrators can upload plan and participant information, including data already reported on Form 5500, as well as details about separated participants who are owed benefits. To streamline this process, the DOL has provided an upload template, making it easier for administrators to manage data submissions, even across multiple plans.

Key Considerations for Plan Sponsors and Administrators

Plan sponsors will play an important role in the success of the Retirement Savings Lost and Found. While participation is voluntary during the initial rollout, engaging with the program can demonstrate a commitment to fiduciary responsibilities and help participants reconnect with lost retirement benefits. Below are the key considerations for plan sponsors:

• Voluntary Data Submission: Plan sponsors are encouraged to provide current plan details and participant information for separated vested participants aged 65 and older. Submissions do not require historical data or younger participant records during this phase.
• Fiduciary Duties: Participation aligns with ERISA fiduciary responsibilities, with the DOL offering liability protection for data submitted through the RSLF portal. Unlike private tools, which operate without government oversight, the RSLF is a federally mandated program with clear compliance protocols.
• Cybersecurity and Privacy: The RSLF uses advanced encryption and secure Login.gov authentication to protect participant data during submission and storage.
• Participant Opt-Outs: Participants can request to have their information excluded from the database. Sponsors should be prepared to address these requests.
• Costs: Reasonable expenses for data submission can be paid from plan assets. Sponsors must carefully document these costs to ensure compliance and transparency.
• Future Expansion: As the database grows, plan sponsors may need to adapt to expanded data requirements and a broader participant base. Staying informed about updates will be essential.

Contact Us

The Retirement Savings Lost and Found is an important step in addressing the issue of lost retirement accounts. While participation is voluntary, the program offers plan sponsors a chance to assess processes and consider how they support locating lost benefits. If you have questions about the information outlined above or need assistance with your next retirement plan audit, Wilson Lewis can help. For additional information please call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.