Department of Labor releases proposed regulation on retirement plans and automatic portability transactions when employees change jobs

Summary:

The U.S. Department of Labor's Employee Benefits Security Administration has proposed a regulation to implement automatic portability transactions under the SECURE 2.0 Act of 2022. The goal is to help workers keep track of their retirement savings accounts and improve retirement security by reducing cash-outs when they change jobs. The proposed regulation covers 11 specific topics, including scope of the exemption, disclosures, investments, and data security, to ensure that automatic portability providers execute transactions properly and do not mismanage participant data. The public comment period has been opened for 60 days, and comments can be submitted through the department's website.