Proposal Allowing Unclaimed Retirement Distribution Transfers to State Unclaimed Property Programs Introduced

Representatives Ron Estes (R-KS), and Seth Magaziner (D-RI), have introduced H.R. 5325, the Unclaimed Retirement Rescue Plan to direct the Department of Labor to issue regulations allowing transfers of unclaimed retirement distributions to state unclaimed property funds. Prior to transferring distributions to these programs, the responsible plan fiduciary would be required to perform necessary searches and provide a notice to the participant or beneficiary that if there is no response the distribution will be transferred to the state unclaimed property program where the participant or beneficiary last resided.

Representatives Estes and Magaziner—who are both former state treasurers for their respective states—indicated in a press release that state unclaimed property programs are effective tools to return lost assets in an efficient manner. The bill has been referred to the House Committee on Education and Workforce as well as the House Committee on Ways and Means for further consideration.