New Bipartisan Bill Stops Government-Sanctioned Theft

WASHINGTON, D.C. - Today, Congressman Sam Liccardo (CA-16) and Congressman Mike Lawler (NY-17) introduced the bipartisan SAFER Act to stop states from seizing Americans' savings and investments through escheatment laws.

Under escheatment, states can take control of so-called "unclaimed property" and too many states have seized those hard-earned retirement funds to plug budget holes or even finance sports stadiums. The SAFER Act bars states from escheating securities, digital assets, or non-ERISA retirement accounts unless and until a financial institution confirms the asset owner has died. The bill protects long-term investors and retirees from losing hard-earned savings they reasonably expect to access later in life.

"Your invested savings should stay yours, but too many states seize Americans' hard-earned money with too little accountability," said Liccardo. "States shouldn't steal grandma's hard-earned savings to build sports stadiums. We've introduced the SAFER Act to stop the government-sponsored cash grabs that victimize too many older Americans."

"States have been able to raid Americans' savings under the guise of 'unclaimed property,' leaving families blindsided when they discover their investments were seized or liquidated without real cause. By requiring a confirmation of death before any escheatment, we're protecting retirees, long-term investors, and every American who plays by the rules and expects their hard-earned money to be there when they need it," Lawler.

Think the state may have claimed your property? Visit missingmoney.com to check and reclaim what's yours. Bill text is available here and a fact sheet and FAQ can be found here and here.

The SAFER Act earned support from SIFMA, ICI, U.S. Chamber of Commerce, and FSI.

"Too often, everyday investors find that states have taken and liquidized their assets without notice through government-sanctioned theft. That's why the Chamber thanks Rep. Liccardo and SIFMA applauds Rep. Sam Liccardo and Rep. Lawler for their work to prevent Americans from unnecessarily losing hard-earned savings and investments to state abandoned property laws. Many state laws leave buy-and-hold investors vulnerable to having their nest eggs liquidated without their knowledge. We applaud Congress' recognition that investors deserve updated protections that reflect modern technology and processes, and financial institutions who serve them should not be forced to comply with a patchwork of state abandoned property laws that work against their customers. We look forward to working with Congress to find effective systemic solutions to this ongoing issue, said SIFMA President and CEO Kenneth E. Bentsen, Jr.

"ICI applauds Representatives Liccardo and Lawler for their leadership in establishing a federal framework for the escheatment of unclaimed property. Today, each state sets its own abandoned property rules, resulting in a patchwork of standards across the country that can place American investors' assets at risk. Federal standards would provide greater consistency and protections for investors nationwide. ICI has long advocated for reasonable standards that protect investors' assets while ensuring appropriate transfer of truly abandoned property to the states," said ICI President and CEO Eric J. Pan.

Rep. Lawler for sponsoring the Safeguarding Americans' Fairly Earned Retirement (SAFER)

Act, which will shield American workers and their families from their own state government seizing their hard-earned savings and retirement simply because they are a passive, long-term investor. Thanks to the leadership of Rep. Liccardo and Rep. Lawler, this bill will protect millions of Americans' savings from unfair inactivity standards that put families' financial futures at risk," said Mike Flood, Senior Vice President, Center for Capital Markets Competitiveness, U.S. Chamber of Commerce.

"The Financial Services Institute is pleased to support this legislation," said FSI President & CEO Dale Brown. "Americans rely on long-term investments to help them save for important financial goals such as retirement and college education. We support modernizing rules to reflect advances in technology, including this bill that ensures states do not prematurely seize accounts that an investor simply left to grow for future financial needs."