Lost 401(k) Cash Database Encounters DOL Data Collection Hurdles

The US Labor Department is relying on employer data disclosures to build a registry by year’s end to connect retirement savers with unclaimed 401(k)s, a move that will require overcoming plan sponsors’ liability concerns.

The Employee Benefits Security Administration hit a snag earlier this year when the IRS refused to share plan data with the DOL, citing confidentiality rules. Now the agency is seeking voluntary submissions from plan sponsors to track down “lost” assets, unclaimed by participants or their beneficiaries when workers leave their jobs.

Regulators’ new focus on plan cybersecurity along with separate DOL enforcement initiatives is making ...