The U.S. Department of Labor's Employee Benefits Security Administration has announced a new enforcement relief policy aimed at assisting retirement plan fiduciaries in managing small benefit amounts owed to individuals who cannot be located. This policy provides an option for fiduciaries to transfer entire benefit payments of $1,000 or less, owed to missing participants, to state unclaimed property funds under certain conditions.

"This policy gives fiduciaries an additional option for handling small outstanding retirement benefit payments owed to missing participants and beneficiaries," stated Assistant Secretary for Employee Benefits Security Lisa M. Gomez. "Our goal is to reunite participants and beneficiaries with their retirement benefits and this new policy will support fiduciaries’ ability to choose this option when prudent and provide individuals with another option for finding benefits that may be owed to them."

To qualify for the relief offered by this policy, fiduciaries must adhere to specific conditions designed to protect the interests of the missing individuals. These include adopting best practices for locating missing participants and beneficiaries and selecting state unclaimed property funds that meet minimum standards outlined in the policy.

For further details on the new policy, interested parties can refer to Field Assistance Bulletin 2025-01: “Missing Participants and Beneficiaries—Small Retirement Benefit Payments Transferred to State Unclaimed Property Funds From Ongoing Pension Plans.” Questions can be directed to EBSA’s Office of Regulations and Interpretations at (202) 693-8500.