The DOL’s Retirement Savings Lost and Found:
Reconnecting Workers with Their Benefits
By Blaise Stevens, Managing Member, Strategic Advisory Partners
In a significant development for retirement plan participants and administrators alike, the Department of Labor (DOL) has officially launched its Retirement Savings Lost and Found database. This new tool represents a crucial step forward in addressing one of the most persistent challenges in our retirement system: reconnecting participants with their forgotten retirement benefits.
Understanding the Need:
Throughout my years advising organizations on retirement plans, I’ve witnessed firsthand how easily participants can lose track of their retirement accounts. Whether due to job changes, relocations, or corporate reorganizations, the disconnect between plans and their participants has been a growing concern. The launch of this database marks a pivotal moment in addressing this industry-wide challenge.
Current State and Future Potential
While the database’s initial launch is a milestone worth celebrating, it’s important to understand that we’re seeing just the beginning of what this tool can become. The DOL has taken a pragmatic approach, starting with a focused scope that prioritizes participants aged 65 and older who are owed benefits. This strategic decision allows for a controlled rollout while laying the groundwork for future expansions.
Data Collection Challenges and Solutions
The DOL’s approach to building this database has been both innovative and adaptable. When initial attempts to acquire data from the IRS were constrained by privacy laws, the department pivoted to a voluntary data collection model from plan recordkeepers. They’ve also leveraged existing Form 8955-SSA data, though this comes with known limitations, particularly regarding account closure updates.
What This Means for the Industry
Plan Sponsors
For plan sponsors and administrators, this tool will eventually streamline the process of locating missing participants, potentially reducing administrative burdens and costs.
Plan Participants
For participants, particularly those approaching retirement age, this database offers a centralized resource for tracking down forgotten benefits.
Retirement Industry
For the retirement industry as a whole, this represents a significant step toward modernizing our infrastructure and improving service delivery.
The DOL’s regulatory agenda indicates that we can expect a Notice of Proposed Rulemaking in July 2025, which will likely expand the database’s scope and capabilities. This phased approach allows for careful implementation while maintaining focus on the ultimate goal: ensuring retirement benefits reach their rightful owners.
For organizations involved in retirement plan administration, I recommend:
Actively participating in the voluntary data submission process to help build a more robust database.
Reviewing internal procedures for maintaining participant contact information
Preparing for potential regulatory changes as the database evolves
The launch of the Lost and Found database, while just a first step, represents significant progress in modernizing our retirement system infrastructure. As the database matures and expands, it has the potential to become an invaluable tool for connecting participants with their hard-earned benefits.
At Strategic Advisory Partners, we’ll continue monitoring these developments and advising our clients on how best to leverage this new resource. While there’s still work to be done, this initiative demonstrates the industry’s commitment to improving retirement outcomes for American workers.
