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University of the District of Columbia Law Review

Kelly Maurer

Abstract

The SECURE 2.0 Act of 2022 significantly expands retirement plan participation through automatic enrollment mandates, a policy aimed at improving financial security for American workers. However, these provisions may create unintended hardships for undocumented immigrant workers, who constitute between 4.4% to 5.4% of the U.S. labor force. This Note examines how automatic enrollment, default contribution rates, and current distribution requirements may create financial and legal hardships for undocumented workers lacking valid Social Security Numbers (SSNs) or Individual Taxpayer Identification Numbers (ITINs). The analysis explores the uncertain legal status of undocumented workers under the Employee Retirement Income Security Act (ERISA), as well as administrative challenges associated with accessing retirement funds upon job loss, retirement, detention, or deportation. Additionally, this Note considers the potential for increased abandoned or lost retirement accounts among undocumented participants and evaluates potential legislative and administrative reforms to mitigate these issues. Proposals include clarifying ERISA protections for undocumented workers, strengthening retirement plan notice requirements, ensuring retirement savings access, waiving penalties for Required Minimum Distribution (RMD) failures due to immigration-related barriers, and establishing confidentiality safeguards within the Department of Labor’s new Retirement Savings Lost and Found Database that mirror Internal Revenue Code § 6103. By addressing these concerns, policymakers can uphold retirement security for all workers contributing to the American economy while safeguarding vulnerable immigrant communities from unintended financial consequences.

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