SB 1405: Unclaimed personal property: employee benefit plan distributions.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Under existing law, employee benefit plan distributions and any income or other increment thereon escheats to the state if the owner has not, within 3 years after it becomes payable or distributable, accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or administrator of the plan under which the trust or fund is established. Existing law provides for an exception to escheatment if, at the time the distribution becomes payable to a participant in an employee benefit plan, the plan contains a provision for forfeiture or expressly authorizes the administrator to declare a forfeiture of a distribution to a beneficiary who cannot be found after a period of time specified in the plan, as specified.

This bill would establish, as an additional condition for the above exception to apply, the requirement that the distribution have been subject to a forfeiture that has not been reversed by the plan.

This bill would also provide that to the extent a court determines the above provisions to be inoperative, preempted, or otherwise limited, in whole or in part, by the federal Employee Retirement Income Security Act of 1974, or any other federal law, the above provisions will be operative in the manner and to the extent allowed pursuant to any federal statute, regulations, or guidance governing this matter that are adopted by the United States Department of Labor. The bill would also provide that if the Controller finds it necessary, the Controller may enter into a multistate collaborative agreement or other contract for the purpose of ensuring that any property delivered to this state that may be subject to the above provisions regarding employee benefit plan distributions complies with federal law.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 27, 2026Chaptered by Secretary of State. Chapter 711, Statutes of 2026.
2. September 27, 2026Approved by the Governor.
3. August 21, 2026Enrolled and presented to the Governor at 3 p.m.
4. August 18, 2026In Senate. Ordered to engrossing and enrolling.
5. August 17, 2026Read third time. Passed. (Ayes 74. Noes 0. Page 6208.) Ordered to the Senate.
6. August 10, 2026Ordered to third reading.
7. August 10, 2026From consent calendar on motion of Assembly Member Aguiar-Curry.
8. August 6, 2026Read second time. Ordered to consent calendar.
9. August 5, 2026From committee: Do pass. Ordered to consent calendar. (Ayes 15. Noes 0.) (August 5).
10. June 23, 2026From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (June 23). Re-referred to Com. on APPR.
11. May 18, 2026Referred to Com. on JUD.
12. May 7, 2026In Assembly. Read first time. Held at Desk.