Navigating Your Retirement Savings: A PG&E Employee's Guide to the New Federal 401(k) Database

Healthcare Provider Update: Healthcare Provider for Pacific Gas & Electric The primary healthcare provider for employees of Pacific Gas and Electric (PG&E) is often covered under large insurance carriers that offer comprehensive plans, including offerings from Blue Cross Blue Shield and UnitedHealthcare; the exact provider may vary depending on the employee's specific plan and regional options available. Projected Healthcare Cost Increases in 2026 As we look ahead to 2026, healthcare costs are anticipated to rise significantly due to a combination of factors. Insurers are reporting average premium increases that could exceed 20%, driven largely by ongoing inflation in healthcare services and the potential expiration of enhanced subsidies provided under the Affordable Care Act. This perfect storm of rising medical costs and diminished financial support could shock many consumers, with estimates suggesting that out-of-pocket premiums might surge by as much as 75% for individuals reliant on marketplace plans. As such, both employees and employers within PG&E should prepare for heightened expenses, taking proactive steps now to mitigate potential financial impacts. Click here to learn more

In this article, we will discuss:

1. The growing issue of unclaimed 401(k) accounts and the financial implications for individuals, particularly PG&E employees.

2. The new federal law, SECURE 2.0, and the upcoming retirement account tracking database, including how it can assist in locating lost retirement savings.

3. Practical strategies for managing, transferring, and consolidating retirement accounts to enhance financial outcomes and minimize fees.

Over the past few years, managing retirement accounts has become increasingly intricate, especially for individuals who have changed jobs multiple times. This has led to a significant increase in lost or unclaimed retirement accounts. According to a study by Capitalize ( source ), as of May 2023, there are over 29 million unclaimed 401(k) accounts holding assets worth more than $1.6 trillion. This is a notable increase from May 2021, when 24.3 million accounts contained $1.35 trillion, representing 25% of unclaimed funds, up from 20% in 2021. For PG&E employees, this could mean benefits earned across various roles may not be fully accounted for without diligent tracking.

To address this issue, the SECURE 2.0 federal law, enacted in late 2022, initiated the creation of a comprehensive solution: a database to track lost retirement savings. This project, spearheaded by the Employee Benefits Security Administration of the U.S. Department of Labor (EBSA), is set to launch on December 29, 2023. The database is intended to simplify the process of finding forgotten retirement accounts, which are often overlooked during career transitions. PG&E employees moving between roles or locations may find this tool particularly helpful.

Eric Bond, a financial professional and president of Bond Wealth Management, emphasizes the practicality of this new tool. He highlights that, since there are no fees to access the service, it’s a useful resource for anyone, including PG&E employees, to verify the status of their accounts and reduce the likelihood of leaving valuable assets unclaimed.

Nevertheless, the responsibility of managing and recovering these accounts remains with individuals. Once an account is identified, decisions must be made regarding the funds' future management, such as selecting a new administrator or reallocating investments. Despite the support of the database, navigating the administrative steps for transferring accounts can be challenging, particularly for employees managing multiple transitions within PG&E companies.

For accounts below $1,000, automatic payouts are typically issued upon employment termination. Larger balances, however, require a more deliberate approach. Employees can choose to maintain their accounts with the former employer—an option available for balances above $5,000, as employers cannot mandate a transfer—or transfer the funds to a new employer plan. Employees should also consider transferring directly to the managing financial institution to mitigate the IRS-imposed 20% withholding tax for early withdrawals.

David Schneider, a financial planner and founder of Schneider Wealth Strategies, suggests that transferring funds to a new employer plan simplifies management while offering potential advantages such as loan opportunities. Alternatively, employees may opt for an Individual Retirement Account (IRA), which provides broader investment choices and greater control. However, actively investing IRA funds is crucial, as they generally offer less protection from creditors compared to professional plans.

Consolidating retirement accounts can lead to lower fees and more tailored investment strategies. Although the new federal database is a significant development, it remains in its early phases and may take time to become fully efficient. Additional resources, such as the National Registry of Unclaimed Retirement Benefits, National Association of Unclaimed Property Administrators, and FreeERISA, remain valuable for tracking unclaimed retirement funds. These tools are especially useful for PG&E employees seeking better financial outcomes.

The creation of this federal database represents a major advancement in retirement planning, reflecting broader efforts to improve financial outcomes for future retirees. As this tool evolves, it may significantly change how individuals manage their retirement accounts, keeping fewer funds remain inactive and more retirees can benefit from their lifelong savings—a key consideration for PG&E employees.

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An often-overlooked aspect of retirement planning for those nearing or in retirement is the impact of inflation on dormant 401(k) funds. Inflation can erode the purchasing power of funds held in accounts that may not be invested aggressively enough to outpace inflation. This highlights the importance of actively managing these accounts. According to a study by the National Institute on Retirement Security ( source ), retirees are increasingly vulnerable to inflation and other risks if their funds are not properly managed, a critical concern for PG&E employees.

The federal SECURE 2.0 database offers a streamlined way to recover lost 401(k) accounts. It is essential to explore all available resources for managing and transferring these accounts effectively, helping individuals make informed decisions about their retirement savings. For PG&E employees, using these tools is an important step in aligning their retirement strategies with their financial goals.

Rediscovering a forgotten 401(k) with the federal database is akin to reconnecting with an old friend via social media. Just as social platforms aggregate personal data to simplify searches, this database consolidates information on 401(k) accounts, making it easier to locate dormant accounts. This modernized approach transforms a time-consuming task into a manageable process, ultimately supporting individuals’ financial well-being. For the PG&E workforce, such resources are invaluable for managing long-term savings effectively.