New Invoice Would Create ‘Retirement Misplaced and Discovered’
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If you’ve ever wondered what happened to a 401 (k) account from a few jobs ago, you might not have to wonder long.
Earlier this month, MP Bobby Scott (D-Va.) Introduced the Retirement Improvement and Savings Enhancement Act, or RISE Act, to the US House of Representatives. And the bill has since passed the House of Representatives Education and Labor Committee, which Scott presides over.
Among other potential improvements to the American pension system, the RISE Act would create a centralized “lost and found” for retirement accounts. As Scott describes it:
“The RISE Act, which contains several proposals from committee members, brings significant improvements to our pension system. These changes include the establishment of an online Retirement Lost and Found database at the Department of Labor to help workers find their hard-earned retirement funds as they move from job to job. According to the Government Accountability Office, more than 25 million people changed jobs between 2004 [and] 2014 left one or more retirement accounts. “
While it is already possible to find an old retirement account, the process is not straightforward and may require verification in several places. An official US Department of Labor database could facilitate this process by pointing workers in the right direction.
The RISE Act is still a long way from becoming law as the entire House and Senate have yet to vote on it.
According to the National Association of Plan Advisors, a pension industry advocate, the RISE Act will be lumped into a proposal to expand an existing pension law, the Setting Every Community Up for Retirement Enhancement (Secure) Act of 2019, before the full House votes on it.
The proposal to expand the Secure Act, often referred to as the Secure Act 2.0, was approved by the House Ways and Means Committee in May, as reported in the New Retirement Bill Would Help Savers of All Ages.
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