Are You Missing Retirement Savings?
On Dec. 27, 2024, the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) launched the public Retirement Savings Lost and Found Database, a tool to help workers and beneficiaries find retirement plans that may owe them benefits.
The SECURE 2.0 Act of 2022, made it possible to establish a database that allows individuals or their beneficiaries to search and find lost retirement accounts. By inputting a name and Social Security number, users can search for accounts from former employers and retrieve their funds.
More Jobs Means You’re More Likely To Forget About Benefits
The typical American career path has evolved significantly. According to a 2023 report from the Department of Labor, people born between 1957 and 1964 had an average of 12.7 jobs between ages 18 and 56, with nearly half of these jobs held before age 24. Frequent job changes can make it easier to lose track of employer-sponsored retirement accounts, especially if savings are not transferred into new plans or IRAs.
The U.S. Department of Labor says there are billions of dollars in unclaimed retirement savings that are still inactive across various financial institutions and employers. According to a November report, since 2017, EBSA enforcement efforts have recovered more than $7 billion in retirement benefits paid directly to missing participants and beneficiaries.
Is Your Data Safe?
To create the Retirement Savings Lost and Found Database, the DOL initially sought data from the IRS's Form 8955-SSA. However, privacy laws in the Internal Revenue Code prevented the IRS from sharing this information. In November, the Office of Management and Budget’s Office of Information and Regulatory Affairs approved an information collection request developed by EBSA under the Paperwork Reduction Act of 1995. This request permits EBSA to gather information from retirement plan administrators and their recordkeepers to complete and update the database.
It's important to note that the Retirement Savings Lost and Found Database has several security measures in place to protect users' personal information. To access the database, individuals must verify their identity through Login.gov, which requires a valid ID-proofed account. This process involves providing legal first and last names, date of birth, Social Security number, a mobile device, and a front and back photo of an active driver's license.
The database employs the highest industry security standards, including full data encryption, to ensure that users' data is protected. Additionally, the database is designed to keep personal information safe by requiring ID-proofed authentication.
How To Get Started
Individuals can access the Retirement Savings Lost and Found Database by visiting the U.S. Department of Labor’s Employee Benefits Security Administration website. The database allows users to search for lost retirement accounts by inputting their name and Social Security number. This feature enables individuals to find accounts from former employers and retrieve their funds.
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