Magaziner Introduces Legislation to Reunite Americans with Lost Retirement Benefits
WASHINGTON, DC — U.S. Representatives Seth Magaziner (RI-02) and Ron Estes (KS-04), both former state treasurers, introduced the bipartisan Unclaimed Retirement Rescue Plan, bipartisan legislation to reunite Americans with lost retirement benefits they rightfully earned.
A 2019 Employee Retirement Income Security Act (ERISA) Advisory Council report estimated that over a billion dollars of retirement savings are stranded in old, inactive retirement accounts. Many people have difficulty accessing their funds because they changed jobs or their former employer went out of business.
While every state and the District of Columbia already run unclaimed property programs to return assets like funds in old bank accounts or the contents of safe deposit boxes to individuals, current law prevents states from helping people recover lost retirement accounts.
The Magaziner-Estes bill would fix this by allowing states to reunite people with their unclaimed retirement benefits through states’ existing unclaimed property programs. This commonsense reform will help ensure Americans have access to all of their hard-earned retirement savings.
“Americans work hard and deserve every penny of the retirement benefits they’ve earned. As the former state treasurer of Rhode Island, I know firsthand that state unclaimed property systems are effective tools to help reconnect people with their benefits,” said Magaziner. “The Unclaimed Retirement Rescue Plan will build on these systems to ensure more workers receive what they earned and can retire with dignity.”
“Hardworking Americans deserve the retirement savings they’ve earned, but these savings are sometimes lost due to job changes. As a former Kansas State Treasurer, I know how unclaimed property programs protect and return lost assets in an efficient manner. Working with Congressman Magaziner at the federal level to introduce this bipartisan bill will ensure forgotten retirement funds make their way back to their rightful owners, strengthening retirement security for millions,” said Estes.
“As former State Treasurers, Representatives Magaziner and Estes know the value of state unclaimed property programs in returning missing retirement funds. At no cost to the federal government, states can use proven systems to reunite over $1 billion and stem the problem of individuals becoming disconnected from their retirement savings – a problem that grows by $100 million each year,” said NAST President and North Dakota State Treasurer Thomas Beadle. “We urge members of Congress to follow their lead and co-sponsor this legislation.”
The Unclaimed Retirement Rescue Plan would:
- Allow retirement plan administrators to voluntarily transfer unclaimed retirement distributions between $50 and $5,000 to state unclaimed property programs through the States’ Unclaimed Retirement Clearing House (SURCH) initiative, which is already used by states and private-sector benefit plan administrators.
- Direct states to regularly update the Department of Labor’s Retirement Savings Lost and Found (RSLF) database so individuals can more easily track and recover their money.
- Require the Secretary of Labor to report to Congress on the effectiveness of these regulations.
The legislation is endorsed by the National Association of State Treasurers (NAST) and National Association of Unclaimed Property Administrators (NAUPA).
You can read the full text of Magaziner’s legislation here.
