The U.S. Department of Labor should coordinate with state unclaimed property programs to help connect Americans with their unclaimed retirement savings, according to a bipartisan contingent of 39 congressional members.
U.S. Reps. Ron Estes (R-KS) and Seth Magaziner (D-RI), who led the group, said Oct. 17 there are 29.2 million unclaimed 401(k) accounts holding about $1.65 trillion in assets. The workers and families who own these funds often have no idea of their existence because they have changed jobs or their former employer has gone out of business, they said.
And while state unclaimed property programs already work to reunite individuals with financial assets — such as the contents of a safe deposit box or utility reimbursements — they said that regulatory ambiguity allows thousands of 401(k) accounts to go unclaimed.
“As the Kansas State Treasurer who helped reconnect Kansans with hundreds of thousands of dollars in unclaimed property during my tenure, I am urging the Department of Labor to likewise work with states to help reconnect Americans with unclaimed retirement savings,” Estes said. “Congressman Magaziner and I both know the difference it can make for constituents to receive money that’s rightfully theirs.”
Magaziner pointed out that retirement benefits belong to the Americans who worked hard to earn them, not the large financial institutions who service them.
“As the former state treasurer of Rhode Island, I know that Rhode Island’s unclaimed property division works tirelessly to reunite individuals with their missing property and can do the same for missing retirement checks,” he said. “Everyone deserves to retire with dignity and financial security.”
The lawmakers reiterated their request in an Oct. 8 letter sent to U.S. Labor Acting Secretary Julie Su that was also signed by 37 additional members of Congress.
They urged the Labor Department to develop a uniform, nationwide regulation that allows state unclaimed property programs to help reunite individuals with their lost retirement checks.
“States have developed many powerful and effective methods for locating owners and are best positioned to do so,” wrote the members. “According to the National Association of Unclaimed Property Administrators, state unclaimed property programs returned a record-breaking $5 billion to owners in 2023.
“We encourage the department to finalize a rule establishing a safe harbor for the voluntary transfer of uncashed distribution checks from both active and abandoned or terminated plans to state unclaimed property programs,” according to their letter.