NAST Supports the Unclaimed Retirement Rescue Plan (H.R. 5325) and the use of State Unclaimed Property Programs to Solve the Growing Missing Participant Problem
“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, We urge members of Congress to follow their lead and co-sponsor this legislation.”
Contact Your Representatives to ask them to Sponsor the Unclaimed Retirement Rescue Plan
As the State Treasurer, program administrators, or other advocates, NAST and NAUPA encourages you to contact your entire Congressional delegation asking them to support the bill. (Please thank the member if they are already supporting it.) We encourage you to reach out to the office’s Chief of Staff (by email or phone). They can get the message routed correctly through the office and may appreciate the state political interface with your office. If you need that contact information, please let us know and we can assist.
Write a letter to Congress
Use this guide when drafting your letter, then follow up with an email and telephone call.
Contact Congress
View this list by state and office, and by House and Senate, to assist with your call.
Submit a press release
Your office may want to send a press release, stating your support for the bill's passage.
Write an op-ed
Submit an op-ed to a newspaper in your state. Send us a link once published, and we'll post it!
The Problem
Private sector retirement plans, such as 401(k)s, have a growing problem: an increasing number of uncashed benefit checks. It is estimated that over $100 million in such funds accumulate annually. These unclaimed funds create a significant challenge for plan administrators, who are obligated to locate the missing participants.
Because the federal Employee Retirement Income Security Act (ERISA) generally preempts state laws, including those concerning unclaimed property, retirement funds have largely accumulated within private sector plans rather than being transferred to state programs to be returned to their rightful owners. This occurs despite states having robust unclaimed property programs that successfully reunite billions of dollars to individuals with lost assets annually.
The ERISA Advisory Council studied this problem and acknowledged that “transfers to state unclaimed property programs as providing a greater likelihood of reuniting Missing Participants with their retirement savings than other available approaches.”
"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. The Unclaimed Retirement Rescue Plan will build on these systems to ensure more workers receive what they earned and can retire with dignity. It will additionally support the retirement plan industry in addressing this problem.”
“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,”
The Solution
The States’ Unclaimed Retirement Clearing House (SURCH) is a multi-state initiative designed to streamline the process of returning unclaimed retirement funds to their rightful owners. SURCH provides a centralized, streamlined reporting system for retirement plans to transfer unclaimed property to all participating states through a single submission. This “one-stop” approach simplifies the reporting process for plans, reducing the administrative burden and costs associated with reporting to multiple jurisdictions.
State unclaimed property programs are effective, time-tested, and trustworthy institutions for reuniting individuals with their lost property. State programs can utilize their proven methods and innovative outreach to proactively locate owners of these lost accounts. Retirement plan owners can use trusted sites like missingmoney.com or state government sites to locate their property.
The Unclaimed Retirement Rescue Plan, led by a bipartisan coalition of Rep. Seth Magaziner and Rep. Ron Estes, will support this common sense solution to craft a safe harbor for the transfer to state programs and urge the Department of Labor to strengthen the work already done in the Field Assistance Bulletin 2025-01.
Benefits of SURCH
For Account Owners
Increases the likelihood of being reunited with lost retirement savings.
Provides access to state resources and search tools to locate unclaimed funds.
Ensures that funds are held securely by the state, with no fees charged for claiming them.
For Retirement Plan Administrators
Simplifies the process of reporting and reduces administrative burdens and costs.
Provides a clear and compliant mechanism for handling unclaimed retirement distributions.
Offers a safe harbor for the transfer of these funds.
For States
Increases the likelihood of account owners being reunited with lost retirement savings.
Provides access to state resources and search tools to locate unclaimed funds.
Leverages existing, fully built, and funded state IT and banking systems.
Ensures that funds are held securely by the state, with no fees charged for claiming them.
Support for the States' Unclaimed Retirement Clearinghouse
39 Bipartisan Congressional Members Signed Letter to DoL
41 State Treasurers and Agency Head Signed Letter to DoL
Map of State Participation
Frequently Asked Questions
* Detailed answers to common questions about SURCH, ERISA, unclaimed property, etc.
Q: How do retirement funds get lost?
According to the 2019 ERISA Advisory Council report, Retirement funds can become lost when workers change jobs and lose contact with their former employer’s retirement plans. This lost contact can hinder the distribution of accrued benefits for various reasons, such as the worker forgetting about the benefit, the plan’s name changing, or the worker not knowing how to contact the plan administrator. Uncashed distribution checks are a common way funds become lost, often due to an invalid address, or the worker losing or forgetting to cash the check.
Q: Do states charge participants to recover their property?
None of the states participating in SURCH charge a recovery fee to owners.
Q: Is there a time limit on an owner's recovery of uncashed plan distribution checks?
No, an owner or heir may claim their property at any time from a SURCH participating state.
Q: What checks are reportable through SURCH?
Currently, any outstanding check in the amount of $1000 or less that was issued to a plan participant with a last known address in a SURCH participating state.