H.R. 5325 — Unclaimed Retirement Rescue Plan

This section directs the Secretary of Labor to promulgate, not later than 180 days after enactment, a regulation permitting administrators of pension plans subject to ERISA (i.e., the Employee Retirement Income Security Act of 1974) and other responsible fiduciaries to transfer unclaimed retirement distributions of $50 or more to state unclaimed property programs through the States’ Unclaimed Retirement Clearing House, following (1) a search of informational and commercially reasonable databases for the participant’s or beneficiary’s current contact information and (2) notice to the participant or beneficiary explaining the impending transfer and providing instructions to claim it (with notice not required if no updated contact information is found). The section provides fiduciary relief by deeming such compliant transfers to satisfy ERISA fiduciary duties under sections 404(a) (prudent man standard) and 406 (prohibited transactions); requires the Secretary to establish a mechanism for plans to verify if transferred distributions have been claimed; directs plans to submit quarterly reports to the Secretary detailing transfers (including participant name, SSN, DOB, last address, amount, state, and plan/fiduciary) and claims, with data incorporated into the Retirement Savings Lost and Found database (29 U.S.C. 1153) but not subject to public disclosure under FOIA; shields plans from ERISA liability for transmitting participant data to states via the clearinghouse if reasonable care is used; and clarifies that such transfers do not disqualify a plan trust under IRC §401.