New opportunities for unclaimed property owners in Pennsylvania

With the new year upon us, Pennsylvania joins a growing group of states taking leglslative action to implement a more proactive approach in addressing its ever-increasing unclaimed property funds.

Starting in January 2025, Senate Bill 24 (SB 24 PN 1814), sponsored by Senator John DiSanto, launched the state’s Money Match program. This initiative, similar to those in about 14 other states, uses the recently updated unclaimed property database to verify owner information with other state agencies and ultimately reunite unclaimed funds with their owners.

Owners will receive notification letters detailing their unclaimed funds, including source information such as company name and dates of escheatment. For owners with less than $500 in unclaimed funds, the state treasurer will issue these funds without requiring any additional action from the owner.

The state estimates this will clear roughly $600,000 in unclaimed funds out of a total estimated balance of $4 billion. While inherently a small percentage, any amount can make a significant impact to a Pennsylvania resident. These efforts will also increase the overall awareness of unclaimed property funds and encourage more owners to claim their funds through a more traditional method, via the state’s website.

Impact on the holder community

For businesses, the material impact may be low to none since the funds have already been escheated. However, consider keeping your customer service and complaints team apprised of the state’s initiatives to provide guidance to old and existing customers who might be confused by the notice showing your company’s name. Former customers may mistake the state’s efforts for fraudulent activity and drive up call and complaint volumes.

If your company performs holder reimbursements after the funds have been escheated, documenting a policy and establishing controls around it sets the best precedent for internal compliance. Adding a step to confirm funds with the state prior to making the customer whole may save your company a material loss in the long run.

Operational impact and compliance

This initiative is a huge win for Pennsylvania residents, but the state is relying on the integrity of the information provided by each holder through NAUPA reporting. Take this opportunity to improve your company’s policies and procedures as they relate to escheatment, due diligence, record-keeping and state reporting.

Assess the risks and address any compliance gaps — the customer satisfaction journey should not end at their unclaimed property reporting year.

How Wipfli can help

Wipfli continues to stay abreast of the latest legal changes to help ensure compliance in all areas of unclaimed property. If your business is in need of updated policies and procedures, a compliance risk assessment or needs help with complying with unclaimed property laws, we’re ready to advise you on how best to proceed. Contact a state and local tax advisor today to learn more.