New Clearing House Simplifies Reporting for Lost Funds
A division under the National Association of State Treasurers (NAST) unveiled a new clearing house program that would streamline reporting of uncashed distribution checks for retirement plan participants.
Under NAST, the National Association of Unclaimed Property Administrators (NAUPA), along with cooperation with the Department of Labor (DOL), formed the States’ Unclaimed Retirement Clearing House (SURCH). SURCH is a service provided to retirement plans and recordkeepers, to facilitate reporting of uncashed distribution checks owed to participants in retirement plans. The program would help plan sponsors maintain and administer uncased plan distribution check records and provide a “safe harbor” arrangement for uncashed plan checks consistent with DOL requirements.
Through its online portal, plan sponsors and recordkeepers can voluntary report lost funds to states. Currently, SURCH has agreements with 37 U.S. states and Washington, D.C.
Ultimately, the program aims to reunite participants with missing retirement accounts through its unclaimed property outreach service.
The program comes as more lawmakers seek to connect plan participants with lost funds. In 2025, U.S. Representatives Seth Magaziner and Ron Estes introduced the “Unclaimed Retirement Rescue Act,” which would reunite workers with lost retirement benefits by reviewing existing unclaimed property programs. The legislation was endorsed by the NAST and the NAUPA.
The DOL also announced an enforcement relief policy in 2025, which would give fiduciaries the option to help manage small benefit amounts owed to individuals who cannot be located.
Under the policy, the department would not take action against fiduciaries who transfer benefit payments owed to missing participants of $1,000 or less to state unclaimed property funds, as long as specific conditions are met. These circumstances include adopting best practices for locating missing participants and beneficiaries and meeting conditions designed to protect the interests of missing individuals, among others.
The number of retirement accounts that have been left behind or forgotten reached 29.2 million in 2025, with assets of up to $1.65 trillion.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news.