Media Coverage

401(k) Plans & Auto Portability: Should Your Suite of Auto Plan Features Include Rollovers?

On 12/06/19, RCH Founder, President and CEO Spencer Williams recorded a podcast with Rick Unser of 401(k) Fridays. The hour-long discussion covered the long term impact of automatic enrollment, and the emerging auto concept of Auto Portability. Williams details what Auto Portability is, the retirement challenges it intends to solve, how it differs from today’s auto-cashouts or auto-rollovers and shares how employers or retirement service partners can get involved.

When 401(k) Participants Go Missing: How It Happens, The Impact & What To Do!

RCH Founder, President and CEO Spencer Williams speaks with Rick Unser of 401(k) Fridays, taking on the old problem of missing participants, as well as auto portability, the new solution that may help keep participant information current, prevent cashout leakage and consolidate participants' retirement savings within the 401(k) system.

EBRI: Nation-Wide Auto IRA Program Would Get Huge Boost from Auto Portability

401(k) Specialist Managing Editor Brian Anderson addresses the latest EBRI Issue Brief, which examined two policy initiatives -- the rollout of a hypothetical, nationwide OregonSaves-like auto IRA program, as well as the widespread adoption of 401(k) safe harbor plans. While EBRI found that both policy initiatives could have a substantial impact on the nation's retirement savings shortfall (RSS), combining them with auto portability turbo-charged their results. When combined with auto portability, a nation-wide OregonSaves initiative generated additional, incremental benefits of $303 billion, while adding a whopping $386 billion to the benefits of 401(k) safe harbor plans.

Why 401k Auto Portability is Just the Right Thing to Do

In the fifth installment of his five-part series on 401(k) cashout leakage in 401k Specialist, RCH's Tom Hawkins addresses auto portability, a solution that not only makes sound business sense, but delivers a positive societal impact for the corporations adopting it. Citing the recent "Statement on the Purpose of a Corporation" from members of the Business Roundtable, Hawkins believes that as these socially-conscious corporations examine auto portability, they’ll quickly become convinced that auto portability is both a sound business decision, as well as the right thing to do.

Promising Policies to Reduce 401k Cashout Leakage

In the fourth installment of his five-part series on 401(k) cashout leakage, RCH's Tom Hawkins examines three policy options to address the problem, and finds that policies facilitating portability and addressing financial emergencies have the most promise. Facilitating portability, adds Hawkins, is extensively supported by research -- and in the case of auto portability -- has an already-established regulatory framework with no barriers to widespread adoption.

How Big is the 401k Cashout Leakage Problem (Really)?

In his five-part series in 401k Specialist, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his third article in the series, Hawkins examines the magnitude of the 401(k) cashout leakage problem, sharing new statistics recently supplied by EBRI, and offering some interesting comparisons so the reader can fully-grasp the enormity of the problem.

401k Auto Portability ‘Significantly Reduces’ Retirement Savings Gap: EBRI

401k Specialist Editor-in-Chief John Sullivan reviews EBRI's latest Issue Brief, which highlights the problem of 401(k) cashout leakage, while projecting impressive, beneficial impacts of auto portability on addressing the leakage issue. As Sullivan article leads off, "the numbers are in, and solid" and include analysis of auto portability's benefits as a standalone initiative, as well as in tandem with other policy initiatives that expand plan access. Regarding policies that expand access, Sullivan quotes EBRI Research Director Jack VanDerhei, who states “our analysis further suggests that an auto portability initiative that reduces plan leakage can materially augment such efforts.”

DOL Gives 401k ‘Auto Portability’ Major Boost

In his 8/6/19 article, 401k Specialist Editor-in-Chief John Sullivan addresses the DOL's recent guidance for the RCH Auto Portability program, stating that "the auto revolution in retirement plans (auto-enrollment, escalation, deferral) adds another option with the release last week of the U.S. Department of Labor’s (DOL) final Prohibited Transaction Exemption (PTE) for auto portability." Sullivan goes on to quote RCH President & CEO Spencer Williams, who states that published comments from industry trade groups regarding auto portability were “overwhelmingly positive” while also pointing out the "legal protections for plan sponsors to help small-balance participants preserve their savings."

401k Cashout Confusion: Who’s Doing It and Why?

In his five-part series in 401k Specialist, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his second article in the series, Hawkins examines the demographics of 401(k) cashout leakage, identifying those segments of the population most impacted by the problem, as well as those who stand to benefit the most from a solution.

5 Positive Retirement Plan Proposals Currently Circling Washington

401k Specialist Editor-In-Chief John Sullivan reports on EBRI's 7/11/19 analysis of DC legislative proposals, including mandatory coverage (auto-IRAs), immediate annuities, open MEPs and changes to required minimum distributions -- all of which deliver significant retirement public policy benefits, as measured by their simulated reduction in the retirement savings shortfall (RSS). Importantly, Sullivan singles out auto portability as providing the most-impressive benefits, noting: "if a full auto portability scenario is assumed on top of all of the aforementioned changes to the retirement system, the average retirement deficit is simulated to decrease by 27.1 percent."

Why 401k Cashout Leakage is a Crisis

In his five-part series in 401k Specialist, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his first article, Hawkins addresses the fundamentals of cashout leakage -- defining it, clearing up common sources of confusion, and identifying why the problem continues to persist.

​401k Auto Portability’s Role in Reducing Cybersecurity Risk

In the 5th installment of his five-part series featured in 401K Specialist on "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how auto portability can mitigate retirement savings cybersecurity risks. Auto portability, writes Hawkins, employs the simple-but-powerful principle of consolidation to lower cyber-risk by 1) reducing the cyber-threat attack surface, 2) minimizing fraud-prone, small-balance retirement savings accounts and 3) securely moving retirement savings forward.

3 Ways Auto Portability Promotes 401k Financial Wellness

In the 4th installment of his five-part series in 401kSpecialist, RCH's Tom Hawkins examines how a program of auto portability can enhance 401(k) participants' financial wellness. To make his case, Hawkins identifies three ways auto portability promotes financial well-being, including: 1) preventing unnecessary 401(k) cashouts, 2) helping 401(k) participants clear the "$10,000 hurdle" and 3) simplifying retirement planning.

How 401k Auto Portability is Linked to Higher Efficiency, Lower Expenses

In the third installment of his five-part series on how auto portability serves participants' best interests, RCH's Tom Hawkins examines how auto portability can promote higher plan efficiency and lower plan expenses by 1) reducing small-balance accounts and 2) increasing plan assets. To illustrate these benefits, Hawkins uses the Auto Portability Simulation (APS) to model a hypothetical, 10,000 participant plan over 40 years, with and without auto portability.

401kSpecialist: Where Are We in the Fight For 401k Auto-Portability?

On April 16th, as part of their Strategic Issues Webinar Series, the LIMRA Secure Retirement Institute delivered the webinar Regulatory and Legislative Trends Impacting the U.S. Retirement System, featuring presenter Michael Kreps, Principal, Groom Law Group, and a highly-influential voice in DC on retirement public policy. Kreps provided an insider's update on auto portability, which he characterized as having the potential to deliver “an enormous boost to the industry and to participants in general.”

Auto Portability: A much-needed upgrade for automatic rollover programs

In the 2nd installment of his five-part series in 401k Specialist "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how auto portability, by extending and enhancing elements of automatic rollovers, establishes a new standard of participant care. Auto portability, writes Hawkins, protects participants by: 1) minimizing time spent in a safe harbor IRA, 2) eliminating the need to cash out balances less than $1,000, 3) enhancing participant communication, 4) formally integrating a robust address location search and 5) establishing a transparent, simple & straightforward fee structure.

How Auto Portability Serves the Best Interest of 401k Participants-Part 1

In his five-part series in 401kSpecialist, RCH's Tom Hawkins identifies five key reasons why an auto portability program serves the best interests of plan participants. Part 1 of the series examines the dramatically improved participant outcomes that result from a program of auto portability. Those outcomes, Hawkins contends, demonstrate that plan sponsors who adopt auto portability are acting prudently and solely in the interests of their plan’s participants and beneficiaries.

Auto Portability: Preventer of 401k 'Leakage'

401kSpecialist's Brian Anderson finds a lot to like about auto portability in EBRI's Issue Brief No. 473, which compares outcomes of participants in 401k plans with auto-enrollment against defined benefit plans. The research, says Anderson, shows "how auto-portability in 401k plans could positively impact the retirement security for millions of job-changing Americans by preventing 401k plan leakage before it can occur." Anderson continues, writing: "[t]he concept of auto-portability is a darling of major retirement industry associations, and it’s not hard to see why."

Retirement Industry Associations in Alignment on 401k Auto Portability

401(k) Specialist contributor Tom Hawkins examines the official public comments by large, retirement-focused organizations on the proposed RCH Auto Portability Prohibited Transaction Exemption (PTE), which were posted on 1/7/19. Some distinguished retirement industry organizations weighed in, representing a diverse cross-section of stakeholders, including: retirees, women, businesses, plan sponsors, retirement industry professionals, securities firms, banks, and asset management companies. If their feedback is any indication, then auto portability has a bright future.

401kSpecialist: How to Tame the Biggest Threat to a Secure Retirement

In his 12/17/18 article in 401kSpecialist, contributor Robert Lawton identifies healthcare savings as one of the biggest threats to a secure retirement, advocating for policies that support greater use of HSAs. In his analysis, Lawton also identifies auto portability and open MEPs as "good ideas to help address perceived deficiencies in existing 401(k) plans."

401k Specialist: DOL Wants Your Opinion on Auto Portability

The 401kSpecialist’s Jessa Claeys notes the DOL’s 11/7/18 Employee Benefit Security Administration (EBSA) request for public comment on RCH’s proposed exemption, and advises her readers to comment, if they have strong opinions. The DOL’s exemption, says Claeys, would excuse RCH from ERISA and IRC rules that don’t allow sponsors or fiduciaries to use plan or employee assets for moving a former employee’s retirement savings forward, into their current-employer’s plan.

401k Specialist: A Tale of Two 401(k) Balance Segments

In his August 2018 article in 401k Specialist, RCH's Tom Hawkins reveals new research predicting 401(k) participant outcomes following separation for two balance segments – those above & below $15,000. Using logic developed in the Auto Portability Simulation to track & tally participant outcomes 8 years following separation, the results reveal a startling contrast between the two segments – with participants in the over-$15,000 segment experiencing far-superior outcomes to those in the under-$15,000 segment. To address the disparities, Hawkins advocates for a new “automatic” in the form of auto portability.

401k Specialist Features Recent Retirement Savings Portability Developments

401k Specialist features a July 2018 article by RCH's Tom Hawkins, addressing recent public policy activities on the issue of retirement savings portability. In his article, Hawkins examines three developments, all taking place in late June, and looks ahead to the anticipated delivery of an Advisory Opinion by the Department of Labor on auto portability.

401k Specialist: Understanding (And Solving) The Problem Of Women’s 401k ‘Leakage’

At a May 22nd, 2018 Women's Institute for a Secure Retirement (WISER) roundtable, RCH EVP Tom Johnson debuts new women's 401(k) cashout leakage statistics. This important new data highlights the challenges that women face in preserving their small-balance 401(k) retirement savings when changing jobs, and also points to the promise of auto portability to preserve these savings in order to achieve higher balance levels, where more virtuous behaviors can prevail.

Are You All-In For A 401k Roll-In?

In his 4/02/18 article for 401k Specialist, Tom Hawkins asks plan sponsors to consider where they stand on encouraging rollovers into their 401(k) plan ("roll-ins") from new participants. Presenting the historical progression of roll-ins from 2012 to present, Hawkins then describes 3 levels of roll-in support that plan sponsors can offer. The most effective, says Hawkins, is Level 3, where plan sponsors adopt a facilitated roll-in service, which makes the process worry- and hassle-free for participants.

401k Specialist: How Bad Is The 401k ‘Missing Participant’ Problem?

In his March 14, 2018 article in 401k Specialist, Editor John Sullivan covers the new, joint survey conducted by Boston Research Technologies (BRT) and RCH on the problem of missing participants. The article quotes RCH Founder, President and CEO Spencer Williams and Sullivan notes that the findings are "another arrow in the quiver for 401k auto portability."

Why We Urgently Need A ‘Sustainable’ 401k Defined Contribution System

In his latest article in 401k Specialist, RCH's Tom Hawkins makes the case for creating a 'sustainable' 401(k) defined contribution system. According to Hawkins, the current 401(k) system is unsustainable due to 1) rampant cashout leakage, 2) an explosion of small-balance accounts and 3) a surge in missing participants. Auto portability, says Hawkins, can address these problems and bring sustainability to our defined contribution system.

2 Important Retirement Plan Initiatives Moving Forward

With "Rothification" in the rear-view mirror in 2017, retirement savings policymakers have begun turning their attention to other, more-promising initiatives in 2018 -- namely, auto portability and missing participants.

401k Specialist: Why Auto Portability Makes Everything Better

Great all by itself, auto portability also makes other retirement savings public policy initiatives a lot better.

What To Do About Missing 401k Participants

RCH's Tom Hawkins examines the American Benefits Council's recent letter to the Department of Labor, pointing out the Council's understanding of the root causes of missing participants.

The ‘Problem’ Of Small 401k Accounts (And What To Do About It)

New research shows that the number of active, small-balance 401(k) accounts is growing, creating problems for plan sponsors and participants.

401k 'Cashout' Craziness Continues

In his 8/17/17 article in 401kSpecialist, RCH's Tom Hawkins delivers an update on RCH's National Retirement Savings Cashout Clock.

401kSpecialist Features Auto Portability Benefits

In his latest article in 401kSpecialist, RCH’s Neal Ringquist identifies the primary beneficiaries of Auto Portability.

Tick Tock: Introducing The Retirement Savings ‘Cash-Out Clock’

401k Specialist introduces Retirement Clearinghouse's National Retirement Savings Cash Out Clock, which depicts 2017 401(k) cash out leakage in real time.

Why Retirement Savings Need To Be ‘Recycled’

In his 4/24/17 article in 401kSpecialist, RCH's Tom Hawkins explains why we're more environmentally conscious, not fiscally conscious.

401(k) Participants Would Save $2 Trillion With Auto Portability

In his 4/6/17 article in 401kSpecialist, John Sullivan highlights the latest EBRI research that places the value of Auto Portability to 401(k) participants at $2 trillion.

A Stealth Solution to America's 401(k) Savings Crisis

In a March 2017 article in 401kSpecialist Magazine, RCH EVP Neal Ringquist contends that Auto Portability has begun to emerge as a "stealth" solution for the serious problem of 401(k) cashout leakage.

401kSpecialist: Big Changes Coming for Small 401k Accounts

In his 2/28/17 article in 401kSpecialist, RCH's Tom Hawkins addresses the big changes ahead for small 401(k) accounts, driven by Auto Portability.

401kSpecialist: Good Intentions, Bad Outcomes With Small 401(k)s

In 401KSpecialist Magazine, Neal Ringquist takes a hard look at a legislative recommendation to increase the limit for automatic rollovers to $10,000.

RCH in 401KSpecialist: How to Remove 'Friction' from the 401(k) System

In his 1/24/17 article in 401KSpecialist, RCH's Tom Hawkins summarizes the issue of 'friction' in our 401(k) system, focusing on the recent, joint EBRI-RCH testimony before the ERISA Advisory Council by Tom Johnson and Craig Copeland.

RCH in 401(k) Specialist: How Auto Portability Will Bridge the Minority Participation Gap

RCH's Tom Hawkins addresses how Auto Portability will help increase minority 401(k) participation by increasing auto enrollment.

RCH in 401K Specialist Magazine: Is Adoption Of 401k Auto-Enrollment Decreasing?

Tom Hawkins shares with 401k Specialist Magazine, "Why the industry is losing steam?"

Hidden Gem in EBRI-ICI Study: Synthetic Tenure

Neal Ringquist reviews the recent EBRI/ICI study and discovers a hidden gem: synthetic tenure.

Does 401k 'Auto Portability' Really Work? Yes!

Does 401(k) Auto Portability really work? The answer -- according to RCH's Spencer Williams and Neal Ringquist -- is an emphatic "yes." In their joint article in 401KSpecialist, Williams and Ringquist point to the Auto Portability Simulation (APS) model to support their claims.

RCH in 401K Specialist Magazine: Why Small Balance 401k Distributions Are Falling Through The Cracks

Cash-outs are at epidemic levels; Why are small 401(k)s getting swallowed?

RCH in 401kSpecialist Magazine: The Power Of 401K Auto Portability: A Case Study

Closely examining the year-by-year results, we noticed something odd; Does 401(k) auto-portability really pay off?

RCH in 401K Specialist Magazine: How To Curb 401k Cash-Out Leakage

The problem is particularly acute for small-balance 401(k) accounts; Leakage can make a 401(k) go splat.

RCH in 401K Specialist Magazine: 401k Auto Portability Goes To Washington

What happens when participants change jobs? The next big 401(k) issue to hit Washington lawmakers could be auto-portability.

401kSpecialist Highlights Auto Portability, RCH

John Sullivan highlights the rise of Auto Portability as an emerging solution to address the problem of leakage.

Financial Wellness Benefits Simplified by Auto-Portability

Picking up on a theme from RCH President & CEO Spencer Williams, 401kTV Managing Editor Steff Chalk examines the quantifiable financial wellness benefits that could be realized by plan sponsors and their participants, via the adoption of auto portability. Linking to an article previously authored by Williams in Employee Benefit News, Chalk runs down the litany of persuasive proof points offered by Williams, concluding: "we couldn't have said it better."

401kTV Features Auto Portability as Key to Cybersecurity Risk Management

401kTV's Steff Chalk examines the issue of 401(k) cybersecurity, specifically focusing on the benefits of auto portability in the management of cybersecurity risk. Referencing RCH President & CEO Spencer Williams' recent article in Employee Benefit News, Chalk states that "the technology that makes 401k auto-portability possible may also enhance existing industry best practices that protect plan participants’ personal data." Chalk also adds that "plan sponsors [should] embrace 401k auto-portability to lessen the instances of small-balance accounts and missing participants."

401kTV Features Boston Research Technologies' Findings on Auto Portability

401kTV's Robyn Kurdek examines Boston Research Technologies' research on the initial launch of auto portability.

RCH Cash Out Leakage Video Featured on 401kTV

401kTV has featured an RCH video "The Fundamentals of 401(k) Cash Out Leakage."

401kTV: Retirement Plan Portability Important to Every Plan Sponsor

401kTV's Tim Kelly explores Auto Portability, and makes a strong case that it's important to every plan sponsor, due to America's mobile workforce and adverse outcomes at job change. Kelly quotes Spencer Williams and also embeds video from the recent forum in Washington, DC: "Retirement Plan Portability & Public Policy: Unlocking the potential in portability."

RCH Releases Video "The ABCs of Auto Portability"

RCH releases a video entitled "The ABCs of Auto Portability" -- providing viewers with a basic understanding of how 401(k) Auto Portability works.

401KTV Features RCH Video on Plugging 401(k) Leakage

On 11/7/16, 401KTV.com featured the RCH video "What Plan Sponsors Can Do to Plug 401(k) Leakage."

401KTV Features RCH CEO Spencer Williams

In the first of an ongoing series of interviews, 401KTV's Editor in Chief Fred Barstein talks to RCH CEO Spencer Williams about the basics of America's mobile workforce.

401kTV Features "Five Misconceptions About 401(k) Leakage"

401kTV features the educational video "Five Common Misconceptions About 401(k) Leakage, designed to present plan sponsors with the fact and common misconceptions that surround the topic of leakage from the 401(k) system.

DoL Green-Lights a Newer Auto Feature

The 401kWire covers the "long-awaited news from the Department of Labor" which arrived 7/31/19, in the form of a prohibited transaction exemption (PTE) for the RCH Auto Portability program. The publication quotes RCH President & CEO Spencer Williams, who states "it's been a long time in the making, and we're dancing in the streets right now, we're very happy with the final action."

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The 401K Wire: What to Make of Auto-Portability

The 401kWire's Neil Anderson takes the pulse of some key retirement industry figures in his 11/26/18 piece "What to Make of Auto-Portability." Quoting Lew Minsky (DCIIA), Steve Saxon (Groom Law), Lynn Dudley (American Benefits Council) and Tim Rouse (Spark Institute), the consensus is that auto-portability, as well as the DOL's recent actions, represent positive developments for the retirement industry. Finally, Anderson speaks with RCH President & CEO Spencer Williams, who discusses his going-forward initiative to ramp up outreach to recordkeepers.

401k Wire: As the DoL Smiles, a Roll-In Specialist Ramps Up

The 401k Wire's Neal Anderson speaks with Retirement Clearinghouse (RCH) President & CEO Spencer Williams to get the scoop on RCH's industry outreach and alliance-building activities, in the wake of recent favorable actions from the Department of Labor on the RCH auto portability program. Williams highlights some of the key conditions embedded in the Advisory Opinion and proposed transaction exemption, adding "we are thrilled to that we have these opinions" and "we're thrilled that the department recognized the public interest in auto-portability."

$4B and 155,000 Accounts Later: 401kWire Covers RCH Milestone

On Monday, 11/5/18, The 401kWire's article "$4B and 155,000 Accounts Later" covers RCH's announcement (see RCH Press Release from 10/30/18) on crossing the $4 billion milestone for retirement assets consolidated. RCH CEO Spencer Williams and EVP Neal Ringquist are both quoted in the piece, which also addresses the critical role of auto portability in consolidating small-balance accounts, noting its initial implementation in July 2017.

401KWire: What Is Driving the Missing Participant Issue?

In her 3/21/18 article, 401KWire’s Bridget Doyle extensively quotes RCH’s CEO Spencer Williams on the 401(k) industry’s missing participant problem. As Williams explains, there was little or no existing research on the problem, which spurred his decision to conduct a survey and to “do it from the plan participant’s perspective.” The new study, The Mobile Workforce's Missing Participant Problem, was released this month, and revealed that the problem is “very dynamic and growing” according to Williams. As Williams notes, new solutions are likely to emerge, best practices are hard to define -- but account consolidation will play a critical role.

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How are participants reacting to Auto Portability?

401kWire's Cat Felle reports on the recently-released white paper by Boston Research Technologies.

Retirement Clearinghouse Paves Path to Portability

401kWire's Chelsea Tyson reports on RCH's completion of the "first fully automated, end-to-end transfer of retirement savings from a safe harbor IRA into a participant's active account."

RCH in 401kWire: Retirement Cashouts? There's a Clock for That

401kWire's Chelsea Tyson reports that Retirement Clearinghouse has recently launched its National Retirement Savings Cash Out Clock.

EBRI: IRA Rollovers Often Deviate from 401(k) Asset Allocations

ASPPA Net reporter Ted Godbout examines new EBRI research that finds job-changing 401(k) participants' carefully-crafted asset allocation strategies can become dramatically inconsistent after rolling over balances to IRAs. This issue, the research says, "was particularly acute for small-balance rollovers of less than $5,000, as a large percentage of these assets ended up in MMFs as a default investment in the IRAs." EBRI noted that "facilitating the movement of the IRA assets of those still working back into 401(k) plans, such as through auto portability measures...could help achieve the longer-term asset allocation strategies...developed in 401(k) plans, particularly for accounts with lower balances."

DOL Okays RCH's Auto-Portability Program

NAPA Net's Ted Godbout covers breaking news that the US Department of Labor has granted final approval to Retirement Clearinghouse (RCH) for a Prohibited Transaction Exemption (PTE) for the RCH Auto Portability program. As Godbout states, "the RCH Program seeks to help eliminate duplicative fees and reduce retirement savings leakage by providing individuals who are changing jobs with a way to transfer retirement assets from their prior employers’ plans to their new employers’ plans." Godbout also references the DOL's Advisory Opinion 2018-01A, issued in November 2018, and cites EBRI research indicating that system-wide adoption of auto portability for "smaller accounts alone would save $1.5 trillion."

Also featured in ASPPA Net

EBRI's VanDerhei Addresses PSCA Conference, Including Auto Portability Update

ASPPA Net's John Iekel covers EBRI Research Director Jack VanDerhei's 5/1/19 presentation before the PSCA National Conference, where VanDerhei provided an update on auto portability's benefits, as calculated in EBRI's Retirement Security Projection Model (RSPM). According to Iekel, VanDerhei asserted that "introducing auto-portability for participants who are Gen Xers reduced retirement savings shortfalls for couples regardless of which dies first, and for single people regardless of gender."

Also Featured in NAPA Net (link)

ASPPA Net: Portability: Past Is Prologue, But Progress Possible

ASPPA Net's John Iekel examines the recent column by J. Mark Iwry, former Senior Advisor to the Secretary of the Treasury, which addresses the recent actions by the DOL in support of the RCH auto portability program. Iwry, says Iekel, offers a unique perspective, having been a long-time proponent of retirement savings portability, and also having witnessed firsthand the difficulties in moving portability policy initiatives forward.

ASSPA Net Reviews RCH Article on 401(k) Cashouts, Missing Participants

On 8/8/18, ASSPA Net's John Iekel reviews the 7/26/18 article in BenefitsPRO by RCH's Tom Hawkins, which draws a comparison between 401(k) missing participants and cashouts. In making the argument that 401(k) cashouts could be "orders-of-magnitude worse" than missing participants, Iekel summarizes Hawkins' logic, including: 1) missing participants have preserved their savings, 2) participants cashing out are far more numerous than those going missing and 3) almost two-thirds of cashouts are unnecessary. Hawkins' answer to address both problems, says Iekel, is the "introduction of auto-portability."

ASPPA Net: Can Automation Help Solve the Missing Participant Problem?

In his 4/13/18 article, ASPPA Net's Ted Godbout examines key findings from the March 2018 RCH / Boston Research Technologies survey "The Mobile Workforce's Missing Participant Problem". Godbout covers the key highlights from the study, including the "remarkable" finding that 1/3 of the respondents had learned about accounts that they didn't realize they had, as well as the high percentage of respondents (60%) who would prefer an automated solution to update their address or consolidate their balances.

8 things to know about your 401(k) when changing jobs

Bankrate's Dana Dratch offers readers a list of 8 key things to know about their 401(k) accounts when changing jobs. While 401(k) accounts "are designed to be portable" Dratch acknowledges that "moving [a] 401(k) is more challenging" than most realize. Dratch provides a solid overview of participants' options, counsels them against cashing out, and cites Retirement Clearinghouse's 2017 research that indicated more than 30% will take this unfortunate action following a job change.

Barron's: You Should Combine Your Small 401(k) Accounts. Here’s Why.

In her 12/9/18 opinion piece in Barron's, noted retirement researcher Alicia H. Munnell takes stock of the recent DOL actions on the RCH Auto Portability program, which she characterizes as "good news" and a "win for the 401(k) system." Munnell credits RCH's Spencer Williams and Tom Johnson for the solution, which automatically consolidates small accounts as employees change jobs, addressing the 401(k) system's cashout leakage problem.

Barron's: The 401(k) Turns 40, And Like All Birthdays, There’s Good and Bad

In their feature story marking the 40th anniversary of the 401(k), Barron's reporter Sarah Max takes a look at the past, present and future of the now-legendary plan brought to life by the Revenue Act of 1978. Although the "401(k) has been a huge success" Max identifies leakage as a persistent problem and notes the recent emergence of auto portability as a going-forward solution to the problem.

Barrons: How to Fix the 401(k)

As part of their overall feature "40 Years of the 401(k) - The Good, the Bad and the Future", Barron's reporter Sarah Max examines 5 initiatives that could help "fix" the 401(k). At the top of her list is auto portability, which Max indicates could "reduce leakage that occurs when employees cash out of small plans." Other initiatives also mentioned include multiple employer plans (MEPs), the Automatic Retirement Plan Act of 2017 (ARPA), Guaranteed Retirement Accounts, and Icon.

Barron's Article on 401(k) Leakage Features RCH Research

In her October 10th, 2018 article "Don't Let a 'Leaky' 401(k) Mess Up Your Retirement" Barron's reporter Reshma Kapadia examines the problem of 401(k) cashout leakage. Kapadia cites recent research by Retirement Clearinghouse, which explores the impact on minority savers of pairing savings preservation (via auto portability) with the open MEPs expanded access initiative.

EBRI webinar examines impact of tenure on retirement savings

RCH's Tom Hawkins summarizes the April 10th EBRI webinar Trends in Employee Tenure, which offered EBRI’s latest research examining broad employee tenure trends, and the impact that shorter tenure has on retirement savings. The webinar’s presenters included Craig Copeland, EBRI and Spencer Williams, Retirement Clearinghouse (RCH), and was moderated by Stacy Schaus, Schaus Group LLC. In his portion of the presentation, Williams introduced the concept of “synthetic tenure” – whereby enhancing system-wide portability -- particularly for small accounts -- enables participants to preserve their savings through job changes, mirroring the success of EBRI’s longer-tenured, “consistent participation” population.

Auto-portability: A way to address 401(k) leakage

In his 3/22/19 article in BenefitsPRO, Pentegra's RIchard Rausser advocates for auto portability as a means to address the serious problem of "leakage" from the 401(k) retirement system. Rausser's article first looks to research from the Center for Retirement Research (CRR) and the Government Accountability Office (GAO) to underscore the dimensions of the leakage problem, and goes on to cite EBRI research that demonstrates the positive impact of auto portability. Rausser concludes by referencing the DOL's November 2018 actions on RCH's auto portability program, including the pending prohibited transaction exemption, stating that "others in the industry are strongly in favor of auto-portability."

BenefitsPRO: Auto-portability boosts 401(k) results in new EBRI research

In his 2/19/19 article in BenefitsPRO, RCH's Tom Hawkins examines new research, authored by EBRI Research Director Jack VanDerhei, Ph.D., comparing the retirement income generated by 401(k) plans with auto enrollment against defined benefit (DB) plans. While EBRI's primary objective was to address growing concern over the relative decline of DB plans, the study also identified significant, incremental benefits of auto portability, adding to a growing body of research from EBRI demonstrating that auto portability increases retirement security for 401(k) participants.

BenefitsPRO: What is auto-portability? It depends on who’s asking.

With the announcement of the Department of Labor’s recent actions, auto portability has taken center stage in the retirement industry. While auto portability has been well-known to a relatively small group of industry insiders, its recent, widespread coverage in the media has many asking the question “what is auto portability?” In his December 2018 article in BenefitsPRO, RCH Senior Vice President Tom Hawkins suggests that the best answer may depend on who's asking the question, but one thing's clear: auto portability is an idea whose time has come.

RCH in BenefitsPRO: Pairing Savings Preservation with Expanded Access for Minorities

In their October 11, 2018 article in BenefitsPRO, RCH's Spencer Williams and Tom Hawkins address an important retirement public policy question: How would a pairing of auto portability with open multiple employer plans (or “open MEPs”) impact the retirement savings of America’s minorities, and particularly, African-Americans? The RCH analysis found that expanded access initiatives, such as open MEPs, could serve as a catalyst to increase minority participation in employer-sponsored 401(k) plans, but could fall short in preserving minorities' retirement savings. When combined with auto portability, open MEPs could generate far more wealth at retirement, and deliver greater retirement security for minorities.

RCH in BenefitsPRO: Don't become a 401(k) DIY horror story

In his latest article in BenefitsPRO, RCH EVP Spencer Pringle offers job-changing 401(k) participants important tips on how to avoid becoming a 401(k) DIY “horror story.” Pringle examines three DIY scenarios for participants to avoid, including cashing out, stranding a 401(k) balance at a previous employer and finally, attempting a DIY roll-in. Auto portability, education and assistance, says Pringle, are keys to overcoming the traps.

RCH in BenefitsPRO: 401(k) Truth Bomb: Missing Participants are Bad, 401(k) Cashouts are Worse

In his 7/26/18 article in BenefitsPRO, RCH's Tom Hawkins addresses the dual problems of missing participants and 401(k) cashouts, which both share common causes – a mobile American workforce and a lack of retirement savings portability. While missing participants are bad and have been receiving a great deal of attention, the issue of 401(k) cashouts is actually much worse, as annual cashouts outpace new missing participant accounts by a factor of almost 25-to-1. Fortunately, retirement savings portability, in the form of auto portability, delivers a “two-fer” by providing a strategic solution to both.

RCH in BenefitsPro: 401(k) consolidation: What every plan sponsor should know

Plan sponsors know that an explosion of small-balance 401(k) accounts held by terminated participants can create problems, but few sponsors are clear on the underlying causes, and fewer still understand how they can utilize consolidation programs to solve the problem. In his 6/6/18 article in BenefitsPRO, RCH’s Tom Hawkins offers plan sponsors a framework to understand and address the small account problem, applying proven solutions that promote account consolidation.

America’s modern 'throwaway': 401(k) retirement savings

In his article in BenefitsPro, RCH’s Tom Hawkins draws attention to the modern-day waste that occurs when 401(k) participants change jobs and prematurely cash out their retirement savings. Similar to America’s post-World War II “throwaway” culture which gave rise to modern recycling initiatives, Hawkins argues that the solution to 401(k) cashout leakage is auto portability, and predicts that it will catch on as key stakeholders acknowledge the severity of the problem, accept responsibility for solving it and act collaboratively to hasten auto portability’s widespread adoption.

BenefitsPRO Features RCH Missing Participant Survey

BenefitsPRO's Marlene Satter adds her voice to the retirement industry media covering the ground-breaking Missing Participant Survey (link) by Boston Research Technologies and Retirement Clearinghouse. Satter cites key findings from the survey and quotes executives Warren Cormier and Spencer Williams.

BenefitsPRO: Plug the Leaks Before Expanding Access

In a 7/5/17 article in BenefitsPRO, RCH's Tom Hawkins makes the case that 401(k) cashout leakage should be plugged, prior to expanding access to workplace retirement savings accounts.

The African-American Retirement Crisis: How Auto Portability Can Help

The African-American community faces a retirement crisis. Auto portability may be able to help resolve the crisis by helping to prevent cashouts and move retirement savings balances forward.

BenefitsPRO: Small Step for 401(k) Plans Equals Big Leap for Retirement Readiness

In his 2/6/17 article in BenefitsPRO, RCH EVP Neal Ringquist makes the case for Auto Portability. Ringquist likens Auto Portability to a "small step in the right direction" for 401(k) plans, yet one that produces a highly-positive impact on retirement readiness.

RCH in BenefitsPro: An Infrastructure Project that Saves Trillions

In his 11/30/16 article in BenefitsPro, RCH's Tom Hawkins makes the case that reducing cashout leakage is one of America's most-beneficial infrastructure projects, saving trillions while costing taxpayers nothing.

RCH in BenefitsPro: A different ‘save’ to consider during National Save for Retirement Week

Neal Ringquist and Tom Hawkins discuss how we can save retirement itself for National Save for Retirement Week via BenefitsPRO.

RCH in BenefitsPro: EBRI forum examines causes of retirement plan leakage

Marlene Y. Satter addresses retirement plan leakage, topping the agenda at the 78th EBRI Policy Forum in May.

RCH in BenefitsPro: Study: Here's one way to slow 401(k) plan leakage

Marlene Y. Satter, in her 8/11/16 article in BenefitsPro, takes a deeper look into the study from Boston Research Technologies and RCH.

BenefitsPro Talks With Spencer Williams on Orphaned Accounts, Auto Portability Simulation

BenefitsPro's Nick Thornton interviews RCH President & CEO Spencer Williams as RCH unveils the Auto Portability Simulation (APS) model at EBRI's annual Policy Forum.

Williams Provides Reaction to Presidential Call for Plan Portability

Spencer Williams provides BenefitsPro's Nick Thornton with his reaction to President Obama's call for retirement plan portability.

RCH in BenefitsPro: Addressing the critical problem of 401(k) cash-outs

BenefitsPro's Nick Thonrton quotes RCH's CEO Spencer Williams on the problem of plan leakage through cash outs.

RCH EVP Tom Johnson Talks Auto Portability with BlackRock's DCfocus

RCH EVP Tom Johnson sat down with BlackRock's DCfocus publication to discuss Auto Portability.

Bloomberg's Steverman Laments Rollover Battle, Lauds RCH Auto Portability

Bloomberg's Ben Steverman describes his personal challenges to rollover his 401(k) account to an IRA.

Bloomberg BNA: Auto Portability Key to Preventing Leakage

Bloomberg BNA's Sean Forbes covers the unveiling of the Auto Portability Simulation (APS) model at the 78th EBRI Policy Forum, and likes what he sees.

Bloomberg Law: Retirement Clearinghouse Could Get Fee Waived on Savings Transfers

Bloomberg Law's Madison Alder covers the Department of Labor's Nov. 6th proposed exemption for Retirement Clearinghouse to make it easier for auto portability, which Alder describes as "the transfer small sums of savings in individual retirement accounts to new ones when employees change jobs."

Charlotte Business Journal: How this Charlotte retirement firm is driving change in 401(k) rollovers

The Charlotte Business Journal's Caroline Hudson covers the innovative direction taken by Charlotte, NC-based Retirement Clearinghouse (RCH) in the development and delivery of its auto portability program, the subject of recent, favorable actions by the U.S. Department of Labor. Hudson interviews RCH EVP and Chief of Sales Neal Ringquist.

Why you should consolidate those 401(k)s and IRAs

CNBC personal finance reporter Greg Iacurci takes a look at the millions of Americans changing jobs each year, and concludes that consolidation of retirement savings -- particularly to a new workplace savings account -- is their best move. Stranded accounts, writes Iacurci, can cause a variety of problems, including forgotten savings, cash outs, sub-optimal investment choices and a difficult transition to retirement income. Iacurci quotes RCH President & CEO Spencer Williams, who states that “from a consumer perspective, the default should be 100% of the time to move your money [when changing jobs].”

CNBC Video: Robert L. Johnson Addresses Auto Portability's Importance

In a 9/12/19 interview with CNBC’s Squawk Box, Robert L. Johnson, Founder & Chairman of The RLJ Companies, and majority owner of Retirement Clearinghouse (RCH), goes in-depth on auto portability, praising the Trump administration’s favorable actions, while also noting the ongoing bipartisan support for the new plan feature. Johnson offers the CNBC panel a primer on how auto portability works, it’s significant benefits for Americans’ retirement security -- particularly minorities -- and the importance of gaining rapid adoption to deliver on its promise.

Auto Portability 2019: The Year in Review

At the outset of a new decade, RCH EVP & Chief Sales Officer Neal Ringquist pauses to reflect upon the highlights of a momentous year for auto portability, addressing key 2019 developments in regulation, research & public policy, webinars and media coverage, as well as providing readers with his forward-looking predictions for 2020.

A Financial Wellness Program You Can Actually Measure

In his latest Consolidation Corner article, RCH President & CEO Spencer Williams examines the current state of financial wellness programs, and the challenges plan sponsors face in quantifying their benefits. Facilitating retirement savings portability, writes Williams -- whether through auto portability for small balances or an assisted roll-in program for larger balances -- can overcome this challenge by offering sponsors a financial wellness initiative that preserves participants' retirement savings and is easily quantifiable.

The Surprising Migratory Patterns of Job-Changing Participants

In his latest Consolidation Corner article, RCH President & CEO Spencer Williams utilizes EBRI data to examine the migratory patterns of job-changing participants. Looking specifically at the size of their former employers' plans (expressed in terms of numbers of participants) compared to the size of their most-recent active plan, Williams finds that the vast majority (82.98%) of these participants go to an employer with a plan equal in size, or larger than, their former employer’s plan. Only 17.02% of participants go to employers with smaller plans, and a mere 1.9% leave employers with large plans to go to an employer with a small plan (less than 100 participants). This data, says Williams, should significantly allay industry concerns that the adoption of auto portability for small balances could result in harmful participant outcomes.

Safe-Harbor IRAs are Supposed to be Temporary

Writing in RCH's Consolidation Corner blog, RCH President & CEO Spencer Williams observes that safe-harbor IRAs -- created by the EGTRRA-mandated automatic rollover process -- were never intended to be "permanent retirement savings vehicles." Too often, argues Williams, the relief plan sponsors realize from automatic rollovers comes at the expense of participant outcomes -- who experience high levels of cashouts, low investment returns and savings-depleting fees. With the advent of auto portability, participants will spend less time in a safe harbor IRA, and "plan sponsors no longer have to consider trading participant outcomes for administrative convenience."

The Auto Portability Imperative

In the fifth installment of his five-part series on 401(k) cashout leakage, RCH's Tom Hawkins addresses auto portability, a solution that not only makes sound business sense, but delivers a positive societal impact for the corporations adopting it. Citing the recent Statement of Purpose from members of the Business Roundtable, Hawkins believes that as these socially-conscious corporations examine auto portability, they’ll quickly become convinced that auto portability is both a sound business decision, as well as the right thing to do.

The Most Promising Policies to Reduce 401(k) Cashout Leakage

In his five-part series in Consolidation Corner, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his fourth article in the series, Hawkins addresses policies with the most promise to reduce the 401(k) cashout leakage problem.

Cash-Out Leakage is Still Too High—and Auto Portability can Help

In his latest article, RCH President & CEO Spencer Williams takes on cash-out leakage -- which remains a big problem for the U.S. retirement system. Citing research that examines auto portability in tandem with various legislative proposals to help Americans save more for retirement, Williams makes the case that, with auto portability, millions of participants will no longer find cashing out to be the easiest option when they switch jobs, and will preserve their retirement savings instead.

The Magnitude of the 401(k) Cashout Leakage Problem

In his five-part series in Consolidation Corner, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his third article in the series, Hawkins examines the magnitude of the 401(k) cashout leakage problem, sharing new statistics recently supplied by EBRI, and offering some interesting comparisons so the reader can fully-grasp the enormity of the problem.

The Safe-Harbor IRA: Friend or Foe?

In his latest Consolidation Corner blog post, RCH President & CEO Spencer Williams draws much-needed attention to the downside of traditional safe harbor IRAs. While plans can benefit by practices that remove small-balance accounts, Williams argues that this benefit may be illusory, as former plan participants will likely cash out or become “stuck” with multiple accounts that deplete their savings – both scenarios that could expose sponsors to potential liability. Auto portability, says Williams, can reverse this dysfunctional dynamic, achieving better outcomes for plans and participants alike.

An Important Milestone: The DOL Issues Final Prohibited Transaction Exemption for Auto Portability

In his 7/31/19 article in Consolidation Corner, RCH Founder, President & CEO Spencer Williams addresses the latest action by the U.S. Department of Labor (DOL), issuing the final Prohibited Transaction Exemption (PTE) to Retirement Clearinghouse (RCH) for the RCH Auto Portability program, completing the regulatory framework and clearing the way for auto portability’s widespread adoption

The Demographics of 401(k) Cashout Leakage

In his five-part series in Consolidation Corner, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his second article in the series, Hawkins examines the demographics of 401(k) cashout leakage, identifying those segments of the population most impacted by the problem, as well as those who stand to benefit the most from a solution.

What’s Missing from the SECURE Act? A Provision to Plug Cash-Out Leakage

In his latest article in Consolidation Corner, RCH President & CEO Spencer Williams identifies a key, missing element in pending retirement legislation: provisions to plug cash-out leakage. Citing both the SECURE Act of 2019 and the Automatic Retirement Plan Act of 2017 (ARPA), Williams applauds their commendable goals to expand coverage, but takes them to task for failing to incorporate provisions that plug leakage. To make his case, Williams cites two recent EBRI studies, both finding that auto portability – when combined with legislative proposals that expand access – vastly improves their public policy benefits by stemming leakage and by dramatically reducing the nation’s retirement savings shortfall.

Spotlight on Cashout Leakage: The Fundamentals

In his five-part series in Consolidation Corner, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his first article, Hawkins addresses the fundamentals of cashout leakage -- defining it, clearing up common sources of confusion, and identifying why the problem continues to persist.

How Auto Portability Serves Participants’ Best Interests: Part 5

In the 5th installment of his five-part series on "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how auto portability can mitigate retirement savings cybersecurity risks. Auto portability, writes Hawkins, employs the simple-but-powerful principle of consolidation to lower cyber-risk by 1) reducing the cyber-threat attack surface, 2) minimizing fraud-prone, small-balance retirement savings accounts and 3) securely moving retirement savings forward.

How Auto Portability Serves Participants’ Best Interests: Pt 4 Auto Portability Enhances Participants’ Financial Wellness

In the 4th installment of his five-part series on "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how a program of auto portability can enhance 401(k) participants' financial wellness. To make his case, Hawkins identifies three ways auto portability promotes financial well-being, including: 1) preventing unnecessary 401(k) cashouts, 2) helping 401(k) participants clear the "$10,000 hurdle" and 3) simplifying retirement planning.

A Plan Metric Every Sponsor Should Track: Participant-Retained Retirement Savings

In his latest article in Consolidation Corner, RCH President & CEO Spencer Williams advises retirement plan sponsors to consider tracking the average percentage of retirement savings that participants retain during their tenure. Auto portability, says Williams, can enable participants to preserve their small-balance savings through job changes. Going further, Williams encourages plan sponsors and consultants to apply the all-important “participant-retained savings” lens when evaluating automatic rollover programs, including metrics such as cash-out rates, median safe harbor IRA account duration and provider support for consolidation.

LIMRA Webinar Features Michael Kreps’ Update on Auto Portability

EBRI Webinar Examines Impact of Tenure on Retirement Savings

RCH's Tom Hawkins summarizes the April 10th EBRI webinar Trends in Employee Tenure, which offered EBRI’s latest research examining broad employee tenure trends, and the impact that shorter tenure has on retirement savings. The webinar’s presenters included Craig Copeland, EBRI and Spencer Williams, Retirement Clearinghouse (RCH), and was moderated by Stacy Schaus, Schaus Group LLC. In his portion of the presentation, Williams introduced the concept of “synthetic tenure” – whereby enhancing system-wide portability -- particularly for small accounts -- enables participants to preserve their savings through job changes, mirroring the success of EBRI’s longer-tenured, “consistent participation” population.

America's 401(k) System is Unsustainable - Let's Fix It

On Earth Day 2019, as we focus on creating a sustainable and eco-friendly environment, it's worth considering how the application of similar principles would benefit our retirement system. America’s 401(k) system is unsustainable – urgently requiring an upgrade to effectively deliver on its intended goal – helping millions of Americans enjoy a timely and comfortable retirement. The good news is that we're beginning to see important signs of action that could ultimately address the problem.

How Auto Portability Serves Participants’ Best Interests - Part 3: Auto Portability Could Lower Plan Expenses

In the 3rd installment of his five-part series on "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how a program of auto portability can serve to lower plan expenses by 1) reducing small-balance accounts and 2) increasing plan assets. To illustrate these benefits, Hawkins uses the Auto Portability Simulation (APS) to model a hypothetical, 10,000 participant plan over 40 years, with and without auto portability.

Cybersecurity is Augmented by Auto Portability

In his latest column in Consolidation Corner, RCH President & CEO Spencer Williams examines the positive effect that auto portability could have on minimizing the cybersecurity threat to America's retirement system. As Williams observes, the scope and scale of cyber-attacks are escalating, and the retirement system is mobilizing to increase protections. Fortunately, says Williams, the same solution designed to address the industry's proliferation of small, stranded accounts -- auto portability -- can augment cybersecurity efforts through consolidation processes that utilize best security practices, leaving participants and their savings more secure.

Tax Day is Coming—Encourage Millennial Participants to Incubate Saver’s Credits

With Tax Day (April 15) just around the corner, RCH's Spencer Williams advises plans and their participants to take advantage of the Saver's Credit, a tax credit that rewards eligible IRA and plan contributions. Nurturing these contributions not only promotes savings, says Williams, but also makes participants less-likely to cash out their 401(k) balances as they change jobs. Turning to Millennials, Williams addresses the Financial Independence, Retire Early (FIRE) movement, cites the latest research from EBRI indicating that Millennials' retirement prospects are significantly improved by auto portability, and provides several illustrations to make the point.

EBRI Webinar Extends Auto Portability’s Benefits to Young Millennials

In their March 20th webinar "Achieving Retirement Income Equivalency Between Final-Average-Pay Defined Benefit Plans and Automatic Enrollment 401(k) Plans in the Private Sector", the Employee Benefits Research Institute (EBRI) revealed more research supporting the case for auto portability, with their finding that auto portability could dramatically improve defined contribution plan performance for young Millennials.

How Auto Portability Serves Participants’ Best Interests - Part 2: An Enhanced Standard of Participant Care

In the second installment of his five-part series "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how auto portability, by extending and enhancing elements of automatic rollovers, establishes a new standard of participant care. Auto portability, writes Hawkins, protects participants by: 1) minimizing time spent in a safe harbor IRA, 2) eliminating the need to cash out balances less than $1,000, 3) enhancing participant communication, 4) formally integrating a robust address location search and 5) establishing a transparent, simple & straightforward fee structure.

5 Ways to Check if Your ARO Program Needs an Upgrade

RCH Founder, President & CEO Spencer Williams offers plan sponsors a five-point checklist for automatic rollover programs, shining light on features that may require attention, particularly in light of the recent DOL guidance on auto portability.

How Auto Portability Serves Participants’ Best Interests - Part 1: Dramatically Improved Participant Outcomes

Auto Portability Boosts 401(k) Plan Results in New EBRI Research

RCH's Tom Hawkins examines new research, authored by EBRI Research Director Jack VanDerhei, Ph.D., comparing the retirement income generated by 401(k) plans with auto enrollment against defined benefit (DB) plans. While EBRI's primary objective was to address growing concern over the relative decline of DB plans, the study also identified significant, incremental benefits of auto portability, adding to a growing body of research from EBRI demonstrating that auto portability increases retirement security for 401(k) participants.

Want to Help Minority Participants Save More for Retirement? Adopt Auto Portability

headwinds facing minorities in saving more for their retirement, including significantly higher rates of job turnover and cash-out leakage. Building on statements by RCH Chairman Robert L. Johnson at a December 2018 White House event, Williams makes the case that – for minority savers – auto portability could preserve up to $1.4 trillion in retirement savings, over a generation. Williams concludes that auto portability represents the “best, and easiest, way for sponsors and their service providers” to address the problem.

Sidecar Accounts Can Plug Some 401(k) Leakage—But Not Most Leakage

In his latest article in Consolidation Corner, RCH President & CEO Spencer Williams examines the impact of "sidecar" accounts, which he views as a positive trend and a feature that could serve as a useful tool in the struggle to curtail leakage of savings from defined contribution plans. Williams also contends auto portability will be essential to plugging the biggest hole in the retirement system’s "bucket" -- cashout leakage -- which represents 89% of the overall leakage problem.

Retirement Industry Associations Weigh in on Auto Portability

At the end of 2018, major retirement industry organizations were asked to comment on the DOL’s proposed prohibited transaction exemption (PTE) for the Retirement Clearinghouse (RCH) auto portability program. After a brief delay brought about by the partial federal government shutdown, all official comments have been publicly posted. If the views of these organizations are any indication, auto portability has a bright future.

What is Auto Portability? It Depends on Who’s Asking.

With the announcement of the Department of Labor’s recent actions, auto portability has taken center stage in the retirement industry. While auto portability has been well-known to a relatively small group of industry insiders, its recent, widespread coverage in the media has many asking the question “what is auto portability?” In this article, RCH Senior Vice President Tom Hawkins suggests that the best answer may depend on who's asking the question, but one thing's clear: auto portability is an idea whose time has come.

Auto Portability is Like Bacon—It Makes Everything Better

In his monthly column in Consolidation Corner, RCH President & CEO Spencer Williams explains to readers why auto portability is like bacon -- by making everything better for all parties in America’s retirement system.

Department of Labor Issues Auto Portability Advisory Opinion

Is Your Missing-Participant Program a Ford Model T or 2018 BMW?

In today’s day and age, what is considered a state-of-the-art program today could easily become obsolete tomorrow, rendering a plan’s missing participant program vulnerable to fiduciary liability.

Pairing 401(k) Savings Preservation and Expanded Access for America’s Minorities

In this article, RCH's Spencer Williams and Tom Hawkins address an important retirement public policy question: How would a pairing of auto portability with open multiple employer plans (or “open MEPs”) impact the retirement savings of America’s minorities, and particularly, African-Americans?

A Tale of Two 401(k) Balance Segments

RCH's Tom Hawkins reveals new research that predicts 401(k) participant outcomes following separation for two balance segments – those above & below $15,000. Using logic developed in the Auto Portability Simulation to track & tally participant outcomes 8 years following separation, the results reveal a startling contrast between the two segments – with participants in the over-$15,000 segment experiencing far-superior outcomes to those in the under-$15,000 segment. To address the disparities, Hawkins advocates for a new “automatic” in the form of auto portability.

The Next Big Advancement for the 401(k)

In November, we will celebrate an important milestone in the history of the 401(k)—the 40th anniversary of the enactment of the Revenue Act of 1978, which added Section 401(k) to the Internal Revenue Code. Section 401(k) allowed employees to defer compensation without being taxed, and gradually popularized the concept of the employer-sponsored defined contribution plan.

401(k) Truth Bomb: Missing Participants are Bad, 401(k) Cashouts Are Worse

It may surprise many to learn that there’s another problem that’s orders-of-magnitude worse, which silently devastates millions of Americans’ prospects for a timely or comfortable retirement every year. I’m referring to 401(k) cashouts, and it’s time we took serious action to address them head-on.

Regulators and Policy Advocates Focus on Retirement Savings Portability

The most important portability development on the horizon is the DOL’s auto portability Advisory Opinion, which will provide guidance for plan sponsors on the automatic roll-in of small account balances previously forced-out into safe harbor IRAs.

Auto Portability’s Role in Helping Women Save More for Retirement

Auto portability has become a leading retirement savings public policy initiative due to its proven ability to preserve small-balance defined contribution accounts. Now, research is indicating that, when it comes to women, auto portability could deliver even greater benefits by making it easier for women participants to preserve their 401(k) savings and help to put them on par with men to achieve financial wellness.

401(k) Consolidation: What Every Plan Sponsor Should Know

Plan sponsors intuitively know that a proliferation of small-balance 401(k) accounts can create problems. But few sponsors are clear on the factors that give rise to small accounts, and fewer still understand how they can utilize portability programs to solve the problem.

Understanding and Solving the Problem of Women’s 401(k) Cashout Leakage

At a May 22nd, 2018 Women's Institute for a Secure Retirement (WISER) roundtable, Retirement Clearinghouse (RCH) EVP Tom Johnson debuts new women's 401(k) cashout leakage statistics. This important new data highlights the challenges that women face in preserving their small-balance 401(k) retirement savings when changing jobs, and also points to the promise of auto portability to preserve these savings in order to achieve higher balance levels, where more virtuous behaviors can prevail.

DC Plan Sponsor Priorities Should Include Plugging Leakage, Enabling Auto Portability

As we continue to make our way through the second quarter of 2018, now is a good time to reflect on defined contribution (DC) plan sponsor priorities for this year.

Are you all-in on roll-in? Encourage new hires to rollover old 401(k) balances into your plan

Over the past six years, there has been a steady drumbeat pointing the way to increased portability and in-plan consolidation (roll-ins) as the next big strategic focus for 401k plans.

No Plan is an Island

Just as no man is an island, no employer-sponsored retirement plan is an island. New hires who join a plan all come from other companies, where they were likely enrolled in their former-employer 401(k) plans. Similarly, participants who leave a plan when they change employers have accrued 401(k) savings that they will likely want to take with them.

New Insights into the Problem of Missing Participants

Today, Boston Research Technologies (BRT) and Retirement Clearinghouse (RCH) issued a joint press release announcing the key findings from a survey examining the retirement industry’s missing participant problem. The survey, The Mobile Workforce’s Missing Participant Problem, is the first to examine the problem from the perspective of the participant and offers unique insights into its various dimensions.

A New Solution to Tackle the Old Problem of Missing Participants

The problem of missing participants has taken on a new sense of urgency in light of widespread reports that the Department of Labor is focusing heavily on missing participants when auditing plan sponsors and record-keepers.

Two Retirement Public Policy Initiatives Moving Forward in 2018

Two retirement savings public policy initiatives – auto portability and the problem of missing participants – are very likely to see significant progress in 2018. Both initiatives enjoy strong bipartisan support, promise to streamline and strengthen America’s defined contribution system, and will preserve the retirement savings of millions of Americans by ensuring that their savings move forward when they change jobs.

The Most Urgent New Year’s Resolutions for Plan Sponsors

RCH President & CEO Spencer Williams offers plan sponsors 3 crucial resolutions for 2018, including: 1) ending automatic cash-outs, 2) offering roll-ins as part of a financial wellness program, and 3) engaging all participants on crucial decision-making.

Auto Portability Makes Everything Better

In his December 2017 Consolidation Corner blog post, Tom Hawkins writes about auto portability's special qualities. Great all by itself, auto portability also makes a lot of other retirement savings public policy initiatives a lot better.

The Best Blueprint for Improving Retirement Security

RCH President & CEO addresses a blueprint for improving retirement security, incorporating the widespread adoption of auto portability.

The Results Are In: Auto Portability is a Winner!

On 11/7/17, Warren Cormier of Boston Research Technologies published a white paper “Making the Right Choice the Easiest Choice: Eliminating Friction and Leaks in America’s Defined Contribution System.” The key findings of the research confirm that auto portability is a winner, with significant pent-up demand in our defined contribution system.

How to Contain the Damage from the Small-Account Explosion

Small Accounts Continue to Plague Plans.

In Search Of: Guidance for Locating Missing Participants

This article focuses on the American Benefits Council’s specific recommendations to the DOL as set forth in their October 2nd, 2017 letter. The Council’s recommendations, if adopted, could establish a more complete, consistent and reasonable framework for plans to address the missing participant problem, going forward.

Bringing Clarity to the Murky Problem of Missing Participants

The American Benefits Council delivered a letter to the Department of Labor (DoL), urging the DoL to act on the problem of unresponsive or missing participants.

‘May Day, May Day’: Locate your plan’s lost & missing participants before it’s too late

Protect yourself by embracing auto portability.

The Massive Explosion of Small 401(k) Accounts

The Growing Problem of Small Accounts and How to Defuse It

The Exit Bonus Employers Never Intended to Pay

Without seamless plan-to-plan portability in place to preserve retirement savings when a participant changes jobs, many employers are unwittingly paying “exit bonuses” to terminated employees that they may never have intended to pay.

The Cashout Clock is Still Ticking: Let’s Stop It!

On May 12th, Retirement Clearinghouse announced the National Retirement Savings Cashout Clock, a virtual clock that calculates 2017 year-to-date cashout leakage from America’s defined contribution system in real time.

Small Accounts: The Root of Many Problems

Auto Portability is the Most Effective Weed Killer

A Big Step Forward for Auto Portability

Auto portability is now live in America's defined contribution system, implemented by Retirement Clearinghouse and Conduent HR Services for the benefit of a mega plan sponsor's participants.

Washington Recognizes Need for Retirement Plan Portability Solutions – Part 2

Senator Scott Letter, auto portability received an endorsement during a hearing on Capitol Hill this week.

Rising Healthcare Costs Necessitate Healthy Retirement-Saving Habits

If you think of retirement savings as a key part of a healthy retirement, then anyone who has prematurely cashed out 401(k) savings during their working life has suffered a compound fracture that will require several stages of therapy to fully rehabilitate. But a cash-out isn’t the only impediment to a financially secure retirement for these hardworking Americans.

Plug the Leaks Before Expanding Access to Defined Contribution Plans

In recent months, our attention has been drawn to some deserving public policy initiatives that would dramatically expand access to workplace retirement savings accounts and address the “access gap” encountered by millions of American workers who are presently offered no such option.

Auto Portability: Who Will Benefit?

The ultimate beneficiary of Auto Portability is America’s mobile workforce – the qualified plan participants whose retirement savings are preserved.

The Fundamentals of 401(k) Cashout Leakage

This video presentation provides viewers with the latest data characterizing the problem of 401(k) cashout leakage, a major challenge that faces 401(k) participants when they change jobs.

The Rallying Cry for Improving Financial Wellness: ‘Eradicate Cash-Out Leakage In Our Time!’

RCH President and CEO Spencer Williams exhorts the American retirement system to eradicate the scourge of 401k leakage, which deprives millions of Americans of a timely or comfortable retirement.

EBRI Policy Forum Delivers Latest Research on Auto Portability (Video)

Watch video of the 80th EBRI Policy Forum, where the latest research on auto portability is delivered by Jack VanDerhei and Spencer Williams.

Announcing the National Retirement Savings Cash Out Clock

Retirement Clearinghouse has now launched a National Retirement Savings Cash Out Clock, focusing attention on the problem of 401k leakage.

80th EBRI Policy Forum to Address Key Retirement Policy Issues

On Thursday, May 11th, the Employee Benefit Research Institute (EBRI) will conduct their 80th Policy Forum, sponsored by the EBRI Education and Research Fund (ERF). Hosted at the 20 F Street, NW Conference Center, the Forum is scheduled from 8:30am to 12:30pm.

Automatic Cash-Outs Undermine Efforts to Enhance Financial Wellness

In the spirit of Financial Literacy Month, retirement plan sponsors are to be commended for their commitment to enhance financial wellness among participants.

Why America’s Retirement Savings Needs Recycling

On Earth Day 2017, we’re seeing encouraging signs that the problem of retirement savings cash out leakage will finally get the attention that it deserves.

New EBRI Research Finds $2T Saved From Automated Portability

As much as $2 trillion could be retained in the U.S. retirement systems if Auto Portability were fully implemented, according to new research by the Employee Benefit Research Institute (EBRI).

Financial Wellness Requires Mending Fractured Retirement Savings

With millions of Americans suffering from fractured retirement savings, plan sponsors should take the initiative—and fulfill their fiduciary duty—by providing restorative care to their participants and eliminating obstacles to seamless retirement savings portability.

March 30th Washington DC Forum to Showcase Retirement Plan Portability & Public Policy

RCH EVP Tom Johnson previews the upcoming 3/30/17 event "Retirement Plan Portability & Public Policy" to be hosted by the Financial Services Roundtable.

Auto Portability Helps Everybody, and Hurts Nobody

Best of all, it can be implemented across the entire retirement system voluntarily, with little cost—and significant upside—to the private sector.

Big Changes Coming for Small 401(k) Accounts

The pace of change in the world is fast, but slow in the retirement industry. All that is about to change in the world of small 401(k) accounts, where Auto Portability is getting serious attention from DC policymakers and centers of influence.

Incubate Small Retirement Accounts, Don’t Throw Them Away

Neal Ringquist, RCH EVP, addresses the US Chamber of Commerce's legislative recommendation to increase the Automatic Rollover limit to $10,000.

One Small Improvement for 401(k) Plans, One Giant Leap for Retirement Readiness

Today, America faces a different, more down-to-earth challenge: delivering our citizens a comfortable and timely retirement. And similar to the moon landing – a ‘small step’ in the right direction can have a huge impact on the course of our lives.

Auto Portability Simulation (APS)

This video presentation is designed to give the viewer a basic understanding of the Auto Portability Simulation (APS), which models the operation and benefits of Auto Portability.

How to Remove 'Friction' from the 401(k) System

To illustrate the types of situations that participants can encounter, as well as the value of a facilitated roll-in service continue reading Part 3.

The ABCs of Auto Portability

This video presentation is designed to give the viewer a basic understanding of Auto Portability.

LIMRA's Secure Retirement Institute Features Auto Portability Research

RCH's EVP Tom Johnson notes LIMRA's research and support of Auto Portability.

Retirement Clearinghouse’s Logo is Changing

Here’s Why

Awash in a Sea of Small Accounts

APS is a robust, quantitatively-based simulation that measures the size, characteristics and behaviors of America’s increasingly mobile workforce.

Preventing retirement plan leakage: An infrastructure project that saves trillions

The recent U.S. Presidential election brought renewed focus upon large infrastructure projects: massive, capital-intensive efforts required to rebuild America’s roads, bridges, railways and airports. Desperately needed, these projects could cost taxpayers hundreds of billions, perhaps even trillions of dollars.

What is Synthetic Tenure, and Why is it Important?

The easiest way for a plan participant to achieve lifetime participation in the U.S. retirement system is to work for the same employer for 40 years or more.

What Plan Sponsors Can Do to Plug 401(k) Plan Leakage

This video presentation is designed to provide qualified retirement plan sponsors with an overview of key actions that they can take in order to help reduce 401(k) plan leakage.

All Aboard the Retirement Train

It’s ironic that, as we observe another “National Save for Retirement Week,” the retirement system we have in this country isn’t really a “system” at all.

New Research Suggests Auto Portability Will Boost Auto Enrollment

When it comes to the 401(k) plan feature known as automatic enrollment, most industry observers seem to agree that it’s a good thing.

A Different ‘Save’ to Consider During ‘National Save for Retirement Week’

As we prepare to observe National Save for Retirement Week (also known as “National Retirement Security Week”), scheduled for October 16-22, it’s a great opportunity to remember why we, as individuals, need to save for our retirement. But the sobering reality is that we are all being called upon to save retirement itself—by rescuing a retirement system that doesn’t work for millions of hardworking Americans.

Five Misconceptions About 401(k) Leakage

This video presentation is designed to provide qualified retirement plan sponsors with an understanding of the facts and popular misconceptions surrounding the topic of 401(k) plan leakage.

The One Solution Everyone in DC Agrees Upon: We Need Consolidation

There is one topic that everyone in Washington, D.C. seems to agree upon: the importance of consolidation in protecting Americans' retirement security.

Consolidation: Make the Smart Decision the Easiest Decision

"Make the smart decision the easiest decision" seems like an obvious goal for plan sponsors when designing participant-directed retirement plans, and it's certainly driven the rapid adoption of the autos auto enrollment, auto deferral escalation, and auto investment options, such as target-date funds and managed accounts.

Why retirement portability should become employers' next big focus

Time Sensitive! Open Immediately! A significant majority (65%) of participants will make their distribution decision within the first 365 days of their termination from their former employer.

Why Small Balance Cash Outs Are Falling Through the Cracks

According to the recently released 2016 Willis Towers Watson U.S. Retirement Governance Survey, a major trend in retirement plan governance is the growing concern employers have for employees' retirement benefit adequacy and financial well-being.

First Half of 2016: A Look-Back at the Headlines Driving a New "Auto" for 401(k) Plans

In the first half of 2016, not only has the retirement industry awakened to the problem of cashout leakage, but it's begun to acknowledge its root cause: a lack of retirement savings portability. At the same time, Auto Portability has emerged as the only viable solution to cashout leakage, delivering portability for the small-balance (less than $5,000) job-changer, automatically moving their balances forward when they change jobs and enroll in a new plan. Let's look-back at the first half of 2016 and see how Auto Portability may now be poised to become an "overnight success" in the not-too-distant future.

Embracing A New Source of Plan Growth

In the wake of the Fiduciary Rule, providers of all stripes are broadly reevaluating their strategies for the participant and asset retention that is essential to growing their retirement plan businesses. Over the past two decades, providers have primarily looked to capture IRA rollovers as a means to grow retirement assets. The Department of Labor's new Fiduciary Rule creates challenges to that model. However, there is another, largely untapped, pool of assets within providers' reach that can fuel growth premature cash-outs. Auto portability, and portability solutions in general, represent a new and unique way to tap that potential source of growth.

When it Comes to Saving for Retirement, Millennials Can Learn from Baby Boomers' Mistakes

In his 6/30/16 MarketWatch article, RCH President and CEO Spencer Williams suggests an inter-generational dialogue on the pitfalls to avoid when saving for retirement.

RCH and EBRI Present Consolidated Testimony on Auto Portability before the ERISA Advisory Council

On June 8th, 2016 Retirement Clearinghouse (RCH) and the Employee Benefit Research Institute (EBRI) teamed up to present consolidated testimony to the ERISA Advisory Council on Auto Portability, the automation of plan-to-plan transfers for small accounts, when participants change jobs.

Calls for Portability Solutions to Curb Cash Out Leakage Growing Louder

Cash out leakage, the premature withdrawal of retirement savings for non-retirement expenses, is a persistent problem in the retirement industry, and growing more pervasive as employee mobility increases.

Interesting Finding Emerges from the Auto Portability Simulation

When the Auto Portability Simulation (APS) model was recently unveiled at EBRI's 78th Policy Forum, a lot of attention was paid to the "marquee" numbers, and rightly so. I am referring here to the $154 billion reduction in cashout leakage, as well as the $115 billion increase in plan-to-plan roll-ins that occur under the adoption of Auto Portability.

Fast & Slow Leakage Produce a Flood of Outflows

First, let's review the definition of "leakage." If we think of total 401(k) savings as a bucket of water, "leakage" refers to those retirement savings that, like water in a leaky bucket, are withdrawn from the U.S. retirement system every year. There are three holes in the bucket: cash-outs at the point of job change, hardship withdrawals, and loan defaults. According to the U.S. Government Accountability Office, one of these holes is much bigger than the other two combined nearly 89% of all leakage is attributed to cash-outs that occur when a participant changes jobs. Hardship withdrawals and loan defaults together account for the remaining 11%.

Advice college graduates won't hear at commencement: "Strive for 25"

As they set out into the working world, RCH President & CEO Spencer Williams counsels the Class of 2016 on the importance of developing good saving habits from the very beginning. Using the phrase "Strive for 25" Williams notes that the $25,000 retirement savings threshold is a critical milestone that all graduates should target.

Auto Portability Simulation Model Unveiled at 78th EBRI Policy Forum

On May 12th, Retirement Clearinghouse President & CEO J. Spencer Williams unveiled the Auto Portability Simulation (APS) at the Employee Benefit Research Institute's 78th Policy Forum. The APS was developed by Retirement Clearinghouse in conjunction with Dr. Ricki Ingalls, Chair of Computer Information Systems at Texas State University, and Principal at Diamond Head Associates, Inc.

Say What? The Arcane Lingo of Retirement Savings Portability

In virtually any area of specialty, a unique jargon evolves that is highly-specific to that field. To insiders using the lingo every day, it seems familiar and perfectly normal. To outside observers, it can feel like a foreign language -- with words, terms and acronyms that make no sense.

For Earth Day: Consider How "Recycling" Could Apply to Our Retirement System

As we observe the 46th annual Earth Day this April 22nd, we appreciate the awareness that this event has brought to the need to protect our environment, the urgency that it is instilled in all of us, and the tangible results that have been achieved in so many important areas. Although we have much work to do, we have clearly come a long way since the "throwaway" culture that emerged following World War II.

America’s Modern Throwaway – 401(k) Retirement Savings

When trying to shape our future, it is often helpful to understand our past.

Washington Recognizes Need for Retirement Plan Portability Solutions

Clearly, Washington DC is now "getting it" when it comes to retirement plan portability. In November 2015, Senator Patty Murray and other influential members of Congress delivered a letter to Department of Labor Secretary Perez urging action on Auto Portability. Now, we have strong comments from President Obama in his final State Of The Union address on the need for more portable retirement savings.

Auto Enrollment: The Unintended Consequences, Part II (Research)

In his December 1, 2015 article (The unintended consequence of 401(k) auto-enrollment), RCH CEO Spencer Williams exposes the linkage between auto enrollment and lower average account balances. Based on Form 5500 data, Williams' analysis presents some excellent examples of industries where average balances are significantly lower in plans that have adopted auto enrollment compared to plans that have not. RCH's Tom Hawkins follows up that article with his own analysis, extending Williams' earlier work.

As 401(k) Cash Out Leakage Grows, So Does Need for Auto Portability

In his December 11th article in BenefitsPro (Addressing the Critical Problem of 401(k) Cash Outs), Nick Thornton draws much-needed attention to the magnitude of the 401(k) cash out leakage issue, due to the frictions associated with account portability when plan participants switch jobs. Thornton's article rightly emphasizes the need for automated portability similar to automatic enrollment and deferral increases - to effectively address the cash out problem.

401(k) Force Outs: Recycle v. Landfill

Every day, we are reminded that recycling is the responsible thing to do: from the recycling bins we walk by, to the paper we use, and the cans and bottles that we drink from. All of us would agree that conservation of our precious resources is critical, so we gladly pitch in and do our part.

A Blueprint for Lifetime Participation in Plans

How many of us will be so fortunate as to participate in an employer-sponsored retirement plan every day of our working careers? Or, for an even more uncommon scenario, how many of us will work for the same company for 30 or 40 years? Yet, as has been amply established by the Employee Benefit Research Institute (EBRI), those who can raise their hands and respond yes to either of these questions routinely show up in the top decile of savers who are well-prepared for retirement and these participants provide a clear blueprint for retirement-saving success.

WISER Fall Forum to Explore Auto Portability As Solution to Reducing Cash Outs and Preserving 401(k) Assets

On Wednesday, September 30th, the Women's Institute For a Secure Retirement (WISER), in collaboration with Retirement Clearinghouse (RCH), hosts a Forum entitled The Leading Edge - Auto Portability: Solution to Prevent Cash Outs & Preserve 401(k) Assets.

Automatically Moving Mandatory Distributions Forward

The mandatory distribution-to-Safe Harbor IRA plan feature as commonly utilized today was conceived in 2001 and launched in 2005 with good intentions, and for valid reasons. A mobile workforce, combined with a lack of retirement savings portability, had created a burgeoning problem for plan sponsors.

Safe Harbor IRAs Are Not Always Safe

Plan sponsors can help themselves and their participants over the long term by rolling balances of $5,000 or less from inactive participants into safe harbor IRAs. However, for various reasons discussed below, many safe harbor IRAs do not live up to their name and could leave sponsors with unexpected fiduciary liability.

How to Make Mandatory Distributions More Fiduciary Friendly

Mandatory distributions from employer-sponsored plans are a creation of regulation's specifically, a section of ERISA that allows plan sponsors to distribute accounts with less than $5,000 out of a qualified plan and into a safe harbor IRA.

Enhance Auto Enrollment with Auto Portability

The Pension Protection Act of 2006 created a safe harbor for retirement plan sponsors to automatically enroll employees in their plans. This provision was designed to help plan sponsors and participants over the long term, and it has but it also unintentionally fueled a surge in small accounts, hurting both constituencies. Auto Portability is a solution that promises to address the problems associated with automatic enrollment. The benefits are huge -- particularly for high-turnover industries.

Reduce Plan Fees by Increasing Account Balances

Plan costs can be lowered by increasing average balances, and average balances can be increased through auto portability, says RCH President & CEO Spencer Williams.

Why Dump Mandatory Distributions in a Landfill When You Can Recycle?

Mandatory distributions of small 401(k) accounts when participants separate from service provide many benefits for plan sponsors, including lower administrative costs and higher average account balances.

Paris Dennard Identifies Auto Portability as Policy Beneficial to Minorities

In his 12/17/18 opinion piece in The Daily Caller, Paris Dennard examines some of the Trump administration's economic policies toward black Americans, identifying the Labor Department's auto portability rule change as "allowing Americans, especially minorities, the ability to preserve their retirement savings when they change jobs."

Spencer Williams Examines the Migratory Patterns of Job-Changers in Latest EBN Column

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams utilizes EBRI data to examine the migratory patterns of job-changing participants. Looking specifically at the size of their former employers' plans (expressed in terms of numbers of participants) compared to the size of their most-recent active plan, Williams finds that the vast majority (82.98%) of these participants go to an employer with a plan equal in size, or larger than, their former employer’s plan. Only 17.02% of participants go to employers with smaller plans, and a mere 1.9% leave employers with large plans to go to an employer with a small plan (less than 100 participants). This data, says Williams, should significantly allay industry concerns that the adoption of auto portability for small balances could result in harmful participant outcomes.

Also featured in Employee Benefit Adviser

How financial wellness programs can encourage employee participation in retirement savings

Writing in Employee Benefit News, RCH President & CEO Spencer Williams examines the current state of financial wellness programs, and the challenges plan sponsors face in quantifying their benefits. Facilitating retirement savings portability -- by adopting auto portability for small balances or implementing an assisted roll-in program for larger balances -- can easily overcome this challenge by offering sponsors financial wellness initiatives that not only deliver excellent results, but can be readily measured.

Also featured in Employee Benefit Adviser

Safe-harbor IRAs should not be a long-term retirement solution

Writing in Employee Benefit News, RCH President & CEO Spencer Williams observes that safe-harbor IRAs -- created by the EGTRRA-mandated automatic rollover process -- were never intended to be "permanent retirement savings vehicles." Too often, argues Williams, the relief plan sponsors realize from automatic rollovers comes at the expense of participant outcomes -- who experience high levels of cashouts, low investment returns and savings-depleting fees. With the advent of auto portability, participants will spend less time in a safe harbor IRA, and "plan sponsors no longer have to consider trading participant outcomes for administrative convenience."

Also featured in Employee Benefit Adviser

DOL guidance gives OK to retirement savings auto portability program

Employee Benefit News' Caroline Hroncich reports on the Department of Labor's issuance of a final prohibited transaction exemption (PTE) for the RCH Auto Portability program, which she characterizes as "a move which may decrease the likelihood employees cash out their retirement plans when they switch jobs." Hroncich quotes RCH Founder, President and CEO Spencer Williams, as well as Jan Jacobson, senior counsel for retirement policy at the American Benefits Council.

Also featured in Employee Benefit Adviser

Why employees should never cash out their employer-sponsored defined contribution plan

In her 12/27/18 article in Employee Benefit Adviser, contributor Sandy Blair, CalSTRS Director of Retirement Readiness, explains why employees should never cash out of their employer-sponsored defined contribution plan. To make her case, Blair cites research on plan participation, job-changing and cashout leakage from Retirement Clearinghouse, EBRI and the American Benefits Council. For job-changers, Blair believes that the option to "roll their retirement plan assets into the new employer's plan" is "hands down, the best option, as having all an employee's retirement funds in one place makes it easier to track and manage them."

Employee Benefit Adviser: Is your missing participant retirement program a Ford Model T or 2018 BMW?

In his latest column for Employee Benefit Adviser, RCH President & CEO Spencer Williams provides plan sponsors with a 4-step plan of action to dramatically improve their missing participant location efforts, advising sponsors to 1) utilize a "waterfall" approach that engages multiple information sources, 2) maintain a complete audit trail of search activities, 3) conduct an annual search for inactive and unresponsive accounts and 4) implement auto portability. Adopting this approach, says Williams, helps sponsors fulfill their fiduciary responsibilities, reduce administrative burdens and minimize the risk of plan audits.

RCH in EBA: The hidden DC plan sponsor priority: enabling auto-portability

In his latest article in Employee Benefit Adviser, RCH Founder, President & CEO Spencer Williams urges plan sponsors to adopt two critical, but often overlooked priorities for defined contribution plans: reducing cashout leakage and enabling auto portability. Today, plan-to-plan portability is both time-consuming and expensive, resulting in a large number of stranded accounts and cashout leakage, particularly for small accounts. Citing EBRI and other research, Williams demonstrates that enabling seamless plan-to-plan portability through auto portability could dramatically improve participant outcomes, enhance financial wellness and even reduce the incidence of missing participants.

Advisers: Here’s how you improve the broken 401(k) plan system

In his April 5^th 2018 article in Employee Benefit Adviser, RCH’s Founder, President & CEO Spencer Williams argues that just as no man is an island, no employer-sponsored retirement plan is an island. He continues on to detail that new hires who join a plan all come from other companies, where they were likely enrolled in their former-employer 401(k) plans; and similarly, participants who leave a plan when they change employers have accrued 401(k) savings that they will likely want to take with them.

A blueprint for reuniting orphaned 401(k) accounts with their owners

In Employee Benefit Adviser, RCH President and CEO Spencer Williams describes a blueprint for retirement security that includes obtaining behavioral research confirmation, guidance from Washington, and commercial implementation – a blueprint currently being followed by auto portability.

RCH in EBA: Why mending fractured retirement savings is key to financial wellness

In his 4/6/17 article in Employee Benefit Adviser, RCH's Spencer Williams likens the pain of ill health to the pain that many 401(k) participants suffer when they cash out or leave savings accounts behind at their former employer.

Auto Portability: Advisers seek innovative ways to increase retirement savings

Employee Benefit Adviser's Cort Olsen covers the recent DC forum co-hosted by Retirement Clearinghouse, EBRI, WIser and Financial Services Roundtable.

RCH's Spencer Williams Featured in Employee Benefit Adviser

RCH Spencer Williams debunks two common myths about retirement savings: 1) that employees are on their own when transitioning retirement savings after changing jobs and 2) that IRAs are better than 401(k) plans due to "free and ....unlimited investment options."

Spencer Williams Examines the Migratory Patterns of Job-Changers in Latest EBN Column

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams utilizes EBRI data to examine the migratory patterns of job-changing participants. Looking specifically at the size of their former employers' plans (expressed in terms of numbers of participants) compared to the size of their most-recent active plan, Williams finds that the vast majority (82.98%) of these participants go to an employer with a plan equal in size, or larger than, their former employer’s plan. Only 17.02% of participants go to employers with smaller plans, and a mere 1.9% leave employers with large plans to go to an employer with a small plan (less than 100 participants). This data, says Williams, should significantly allay industry concerns that the adoption of auto portability for small balances could result in harmful participant outcomes.

Also featured in Employee Benefit Adviser

How financial wellness programs can encourage employee participation in retirement savings

Writing in Employee Benefit News, RCH President & CEO Spencer Williams examines the current state of financial wellness programs, and the challenges plan sponsors face in quantifying their benefits. Facilitating retirement savings portability -- by adopting auto portability for small balances or implementing an assisted roll-in program for larger balances -- can easily overcome this challenge by offering sponsors financial wellness initiatives that not only deliver excellent results, but can be readily measured.

Also featured in Employee Benefit Adviser

Safe-harbor IRAs should not be a long-term retirement solution

Writing in Employee Benefit News, RCH President & CEO Spencer Williams observes that safe-harbor IRAs -- created by the EGTRRA-mandated automatic rollover process -- were never intended to be "permanent retirement savings vehicles." Too often, argues Williams, the relief plan sponsors realize from automatic rollovers comes at the expense of participant outcomes -- who experience high levels of cashouts, low investment returns and savings-depleting fees. With the advent of auto portability, participants will spend less time in a safe harbor IRA, and "plan sponsors no longer have to consider trading participant outcomes for administrative convenience."

Also featured in Employee Benefit Adviser

Cash-out leakage is still too high — and auto portability can help

In his latest byline in Employee Benefit News, RCH President & CEO Spencer Williams takes on cash-out leakage -- which remains a big problem for the U.S. retirement system. Citing research that examines auto portability in tandem with various legislative proposals to help Americans save more for retirement, Williams makes the case that, with auto portability, millions of participants will no longer find cashing out to be the easiest option when they switch jobs, and will preserve their retirement savings instead.

EBN - The Safe Harbor IRA: Friend of Foe?

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams draws much-needed attention to the downside of traditional safe harbor IRAs. While plans can benefit by practices that remove small-balance accounts, Williams argues that this benefit may be illusory, as former plan participants will likely cash out or become “stuck” with multiple accounts that deplete their savings – both scenarios that could expose sponsors to potential liability. Auto portability, says Williams, can reverse this dysfunctional dynamic, achieving better outcomes for plans and participants alike.

DOL guidance gives OK to retirement savings auto portability program

Employee Benefit News' Caroline Hroncich reports on the Department of Labor's issuance of a final prohibited transaction exemption (PTE) for the RCH Auto Portability program, which she characterizes as "a move which may decrease the likelihood employees cash out their retirement plans when they switch jobs." Hroncich quotes RCH Founder, President and CEO Spencer Williams, as well as Jan Jacobson, senior counsel for retirement policy at the American Benefits Council.

Also featured in Employee Benefit Adviser

What’s missing from the SECURE Act? A provision to plug cash-out leakage

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams identifies a key, missing element in pending retirement legislation: provisions to plug cash-out leakage. Citing both the SECURE Act of 2019 and the Automatic Retirement Plan Act of 2017 (ARPA), Williams applauds their commendable goals to expand coverage, but takes them to task for failing to incorporate provisions that plug leakage. To make his case, Williams cites two recent EBRI studies, both finding that auto portability – when combined with legislative proposals that expand access – vastly improves their public policy benefits by stemming leakage and by dramatically reducing the nation’s retirement savings shortfall.

Job hopping can hamper retirement savings — but it doesn’t have to

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams advises retirement plan sponsors to consider tracking the average percentage of retirement savings that participants retain during their tenure. Auto portability, says Williams, can enable participants to preserve their small-balance savings through job changes. Going further, Williams encourages plan sponsors and consultants to apply the all-important “participant-retained savings” lens when evaluating their automatic rollover programs, including metrics such as cash-out rates, median safe harbor IRA account duration and provider support for consolidation.

Concerned about cybersecurity? Here’s how to protect 401(k) plans

In his latest column in Employee Benefit News, RCH President & CEO Spencer Williams examines the positive effect auto portability could have on minimizing the cybersecurity threat to America's retirement system. As Williams observes, the scope and scale of cyber-attacks are escalating, and the retirement system is mobilizing to increase protections. Fortunately, says Williams, the same solution designed to address the industry's proliferation of small, stranded accounts -- auto portability -- can augment cybersecurity efforts through consolidation processes, leaving participants and their savings more secure.

Tax Day is coming — a perfect time to teach millennials why they shouldn’t cash out

April 15 is just around the corner. While many Americans dread Tax Day, April 15 presents defined contribution plan sponsors with an opportunity to demonstrate their value as fiduciaries, and as financial wellness advocates. Anyone who is 18 or older, not a full-time student, and not claimed as a dependent on someone else’s tax return is eligible for a retirement savings contributions credit (also known as a saver’s credit). This tax credit rewards people for making eligible contributions to their IRAs or employer-sponsored retirement plans. In his latest article in Employee Benefit News, Retirement Clearinghouse CEO Spencer Williams advocates for Millennials to invest the credit in their retirement plan, rather than spend it.

5 ways to check if your automatic rollover program needs an upgrade

In his monthly column for Employee Benefits News, RCH Founder, President & CEO Spencer Williams offers plan sponsors a five-point checklist for automatic rollover programs, shining light on features that may require attention, particularly in light of the recent DOL guidance on auto portability.

RCH's Spencer Williams on Auto Portability's Benefits to Minorities

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams addresses the headwinds facing minorities in saving more for their retirement, including significantly higher rates of job turnover and cash-out leakage. Building on statements by RCH Chairman Robert L. Johnson at a December 2018 White House event, Williams makes the case that – for minority savers – auto portability could preserve up to $1.4 trillion in retirement savings, over a generation. Williams concludes that auto portability represents the “best, and easiest, way for sponsors and their service providers” to address the problem.

Sidecar accounts can help plug 401(k) leakage to an extent

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams examines the impact of "sidecar" accounts, which he views as a positive trend and a feature that could serve as a useful tool in the struggle to curtail leakage of savings from defined contribution plans. Williams also contends auto portability will be essential to plugging the biggest hole in the retirement system’s "bucket" -- cashout leakage -- which represents 89% of the overall leakage problem.

The missing link in helping employees save for retirement

In his latest article for Employee Benefit News, RCH President & CEO Spencer Williams explains to readers why auto portability could be the missing ingredient in helping employees save for retirement. Using auto enrollment as a prime example, Williams describes how auto portability could become the "bacon" of America's retirement system by improving the system as a whole.

EBN: Labor Department clears path for automatic 401(k) transfers

Employee Benefit News reporter Lee Conrad includes the U.S. Labor Department's guidance on auto portability in his daily roundup of retirement news, referencing Anne Tergesen's article in The Wall Street Journal. According to Conrad "analysts say that the guidance will help minimize 401(k) cash-outs of employees who switch jobs" and cites a quote in the article by Morningstar's Aron Szapiro.

RCH in EBN: Is your missing participant retirement program a Ford Model T or 2018 BMW?

In his latest column for Employee Benefit News, RCH President & CEO Spencer Williams provides plan sponsors with a 4-step plan of action to dramatically improve their missing participant location efforts. Drawing upon RCH's extensive experience in locating missing participants, Williams advises sponsors to 1) utilize a "waterfall" approach that engages multiple information sources, 2) maintain a complete audit trail of search activities, 3) conduct an annual search for inactive and unresponsive accounts and 4) implement auto portability. Adopting this approach, asserts Williams, will help sponsors fulfill their fiduciary responsibilities, reduce administrative burdens and minimize the risk of plan audits.

RCH in EBN: The next big advancement for the 401(k)

As the 40th anniversary of legislation enabling the 401(k) draws near, RCH President & CEO Spencer Williams predicts that the next big advancement for the 401(k) will be the “seamless portability and consolidation” brought about by auto portability. The benefits that auto portability will deliver, estimated by EBRI to be as much as $1.5 trillion, could be “right around the corner” and will help millions of Americans achieve a financially secure retirement.

RCH in EBN: Is auto-portability the key to helping women save more in retirement?

Auto portability has become a leading retirement savings public policy initiative due to its proven ability to preserve small-balance defined contribution accounts. RCH CEO Spencer Williams summarizes new research indicating that, when it comes to women, auto portability could deliver even greater benefits by making it easier for women participants to preserve their 401(k) savings, helping put them on par with men to achieve financial wellness.

RCH in EBN: The hidden DC plan sponsor priority: Plugging leakage, enabling auto-portability

In his latest article in Employee Benefit News, RCH Founder, President & CEO Spencer Williams urges plan sponsors to adopt two critical, but often overlooked priorities for defined contribution plans: reducing cashout leakage and enabling auto portability. Today, plan-to-plan portability is both time-consuming and expensive, resulting in a large number of stranded accounts and cashout leakage, particularly for small accounts. Citing EBRI and other research, Williams demonstrates that enabling seamless plan-to-plan portability through auto portability could dramatically improve participant outcomes, enhance financial wellness and even reduce the incidence of missing participants.

RCH in EBN: 401(k) account consolidation: The key to reducing lost participants

In his latest article in Employee Benefit News, RCH’s President & CEO Spencer Williams takes on the predicament of missing participants, making the case that widespread adoption of auto portability is the most effective solution to the problem. Supporting his views with foundational research, Williams points to auto portability’s twin benefits of locating current addresses and consolidating small, stranded accounts as outcomes that collectively satisfy plan sponsors' fiduciary responsibilities, create financial wellness for participants and preserve $1.5 trillion in retirement savings over a generation.

Employers: Here’s how you improve the broken 401(k) plan system

In his March 29^th 2018 article in Employee Benefit News, RCH’s Founder, President & CEO Spencer Williams argues that just as no man is an island, no employer-sponsored retirement plan is an island. He continues on to detail that new hires who join a plan all come from other companies, where they were likely enrolled in their former-employer 401(k) plans; and similarly, participants who leave a plan when they change employers have accrued 401(k) savings that they will likely want to take with them.

No Plan is an Island

Just as no man is an island, no employer-sponsored retirement plan is an island. New hires who join a plan all come from other companies, where they were likely enrolled in their former-employer 401(k) plans. Similarly, participants who leave a plan when they change employers have accrued 401(k) savings that they will likely want to take with them.

A new solution to tackle the old problem of missing 401(k)s

In his latest article in Employee Benefit News, RCH's Spencer Williams breaks new ground in addressing the age-old problem of missing participants. Citing new research from RCH and Boston Research Technologies showing that 67% of inactive plan participants can be found via "auto locate" technology, Williams argues that the auto locate process will revolutionize the location of missing participants and finally bring an end to the insanity of "doing the same thing over and over, and expecting a different result."

3 ways employers can make their retirement plan more attractive in 2018

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams offers plan sponsors 3 crucial resolutions for 2018, including: 1) ending automatic cash-outs, 2) offering roll-ins as part of a financial wellness program, and 3) engaging all participants on crucial decision-making.

A blueprint for reuniting orphaned 401(k) accounts with their owners

In his latest article for Employee Benefit News, RCH President and CEO Spencer Williams describes a blueprint that’s already been established for implementing a best practice default retirement plan feature, such as auto enrollment. The blueprint Williams describes includes obtaining behavioral research confirmation, guidance from Washington, and commercial implementation – a blueprint currently being followed for auto portability.

How to reunite employees with their old 401(k) accounts

In his latest byline in Employee Benefit News, RCH Founder, President & CEO J. Spencer Williams addresses the need for an industry-wide retirement infrastructure, in the form of a private-sector clearinghouse.

Why cyberattacks make a compelling case for auto-portability

RCH President & CEO Spencer Williams makes a compelling case that links recent cyberattacks to the need for auto portability.

The exit bonus employers never intended to pay

RCH President & CEO Spencer Williams draws attention to the 'exit bonus' that employers unwittingly pay when participants cash out their matching contributions.

Why small retirement accounts are the root of many problems

RCH Founder, President & CEO Spencer Williams addresses the problem of small accounts in his latest article in Employee Benefit News.

RCH in EBN: The Rallying Cry for Improving Financial Wellness

Just as the global community united a half-century ago to eradicate smallpox, RCH's Spencer Williams makes the case that plan sponsors and providers can join together in common cause to put an end to 401(k) cashout leakage.

RCH in EBN: Why mending fractured retirement savings is key to financial wellness

In his 4/6/17 article in Employee Benefit News, RCH's Spencer Williams likens the pain of ill health to the pain that many 401(k) participants suffer when they cash out or leave savings accounts behind at their former employer.

Auto Portability Helps Everybody and Hurts Nobody

In his latest article in Employee Benefit News, RCH's President & CEO Spencer Williams makes the strong case that Auto Portability helps everyone and hurts no one.

RCH in EBN: How auto-portability can improve retirement readiness for a mobile workforce

When the scope of the Auto Portability Simulation (APS) model was recently expanded to include accounts under $15,000, RCH uncovered astounding data regarding the size and extent of the "small account challenge."

RCH in EBN: What is synthetic tenure, and why is it important?

Retirement Clearinghouse President and CEO Spencer Williams answers both questions in his recent commentary on Employee Benefit News.

RCH in EBN: Why our retirement system is broken

In his October 18th article in Employee Benefit News, President & CEO Spencer Williams discusses the retirement system we have in the U.S.

RCH in EBN: Retirement Portability Should Be Employers' Next Big Focus

RCH CEO Spencer Williams shares the results of over 300,000 individual decisions made by participants over an eight-year period. The results confirm that portability services are desperately needed to address the cashout leakage problem.

RCH in EBN: Embracing a new source of plan growth

In his July 21st article in Employee Benefit News, RCH President & CEO Spencer Williams highlights the Department of Labor's new fiduciary rule challenges and urges that it's time to consider another source of growth: portability solutions.

RCH in EBN: Not all 401(k) plan leakage is the same

In his 6/9/16 article in Employee Benefit News, RCH CEO Spencer Williams reminds us that leakage is a big problem for the U.S. retirement system.

Why Retirement Portability is Desperately Needed

In his 2/8/16 article in Employee Benefit News, RCH President & CEO Spencer Williams presents a compelling case for retirement savings portability.

The unintended consequence of 401(k) auto-enrollment

Auto enrollment, codified in law by the Pension Protection Act of 2006, was drafted with the best of intentions to increase Americans' retirement savings but it has had the unintended consequence of impairing plan effectiveness. By proliferating small accounts in plans, auto enrollment has caused a decrease in average account balances throughout the U.S. retirement system. Adding to the urgency of this issue is the rising rate of auto enrollment adoption across defined contribution plans of all sizes, but particularly among larger plans.

RCH in EBN: A Blueprint for Lifetime Participation in 401(k) Plans

Spencer Williams identifies portability as the solution plan sponsors should embrace.

RCH in EBN: Safe Harbor IRAs Aren't Always Safe

RCH's Spencer Williams identifies fiduciary-friendly components of safe harbor IRAs that can help preserve retirement savings for former participants.

RCH in EBN: How to Make Mandatory Distributions More Fiduciary Friendly

RCH's CEO Spencer Williams identifies four features that will deliver more-complete fiduciary protection for a mandatory distribution program, including auto portability.

RCH in EBN: Enhance Auto Enrollment with Auto Portability

In his latest Employee Benefit News article, RCH's CEO Spencer Williams contends that Auto Portability is Auto Enrollment's natural complement, particularly in high-turnover industries.

RCH in EBN: Auto-Portability Reduces Plan Fees by Increasing Plan Balances

RCH's CEO Spencer Williams continues to make the case for Auto-Portability, a new plan feature that recycles mandatory distributions, increases average balances and lowers plan costs.

RCH in EBN: Why dump mandatory distributions in a landfill when you can recycle?

Williams advocates a new "recycling" approach for mandatory distributions from plan.

EBRI: Big Benefits When OregonSaves, Safe Harbor 401(k)s Paired with Auto Portability

A 10/31/19 EBRI Issue Brief -- What if OregonSaves Went National: A Look at the Impact on Retirement Income Adequacy -- examines the impact of a nationwide roll-out of a hypothetical "national" OregonSaves plan, as well as the nationwide adoption of 401(k) safe harbor plans by employers not currently offering a DB or DC plan. Not surprisingly, EBRI finds that the increased access to workplace retirement savings plans generated by these programs produces substantial reductions in EBRI's all-important metric, the Retirement Savings Shortfall (RSS). However, when each program is further paired with auto portability, their benefits are dramatically increased -- from $459 billion to $759 billion for OregonSaves, and from $645 billion to $1.0 trillion for 401(k) safe harbor plans.

New EBRI Issue Brief Analyzes Auto Portability's Impact on Preserving Retirement Savings

On 8/15/19, the Employee Benefit Research Institute (EBRI) published a comprehensive Issue Brief addressing the impact of auto portability on preserving retirement savings lost to 401(k) cashout leakage. Authored by Jack VanDerhei, EBRI's Director of Research and announced in an EBRI press release, the analysis utilizes EBRI's Retirement Savings Projection Model (RSPM) to quantify auto portability's impressive benefits 1) as a standalone policy initiative, 2) for specific demographic segments and 3) in tandem with other policy initiatives that expand access to workplace retirement savings plans. Critically, the Issue Brief also highlights the ongoing severity of the 401(k) cashout leakage problem, which their model estimates at $92.4 billion per year as of 2015, and "representing a serious problem that affects the potential of 401(k) plans to produce adequate income replacement in retirement."

New EBRI Research Shows Millennials Benefit from Auto Portability

Expanding on research comparing DB plans vs. 401(k) plans with auto enrollment, on 2/14/19 EBRI released an infographic revealing the beneficial effect of auto portability on Milliennials. When auto portability is added to 401(k) plans, Millennials -- both male and female, for all years of eligibility, and for all income quartiles -- experience significant improvements in their 401(k) plan performance, as measured by equivalent break-even DB plan accrual rates. The latest EBRI analysis adds to a considerable body of evidence that auto portability is a leading retirement savings public policy initiative.

EBRI Research Reveals Auto Portability's Benefits to Generation X Women

New EBRI Research, released 1/17/19, reveals a troubling Retirement Savings Shortfall (RSS) that is significantly higher for Generation X women, including both single females and widows, than for their counterparts. However, EBRI also found that auto portability made a "significant dent in these retirement deficits." According to EBRI, with auto portability "we found at least a double-digit percent reduction for all groups with future years of defined contribution plan eligibility, and for those with 21–30 years of eligibility, we found a 21 percent reduction in deficits for single females and a 31 percent reduction for widows."

EBRI Releases New Research on 401(k) Leakage and Features Auto Portability Simulation

On 8/9/16, EBRI released new research focusing on the recurring issue of leakage from defined contribution savings plans. The August 2016 EBRI Notes summarizes policy forum discussions on the leakage issue, and include an extensive discussion of the RCH Auto Portability Simulation model that addresses outcomes of Auto Portability as workers change jobs.

Initial Results of the EBRI 401(k) Project Model Indicate $1.3 trillion benefit possible

2012 EBRI research indicates that a 50% reduction in cashout leakage could result in an incremental $1.3 trillion in retirement savings, over 10 years.

RCH and EBRI Present Consolidated Testimony on Auto Portability

RCH and EBRI teamed up to present consolidated testimony to the ERISA Advisory Council on Auto Portability, the automation of plan-to-plan transfers for small accounts, when participants change jobs.

The testimony was presented jointly by Tom Johnson, RCH's EVP and Head of Policy Development, and Craig Copeland, EBRI's Senior Research Associate. Johnson and Copeland not only addressed the basics of Auto Portability -- what it is, why it's needed and how it works -- but also covered the latest key research findings and EBRI data that are highly-supportive.

Financial Advisor IQ: DOL Proposes Auto-Portability for 401(k) Plans

Financial Advisor IQ reporter Alex Padalka reports on the Department of Labor (DOL) request for comments on a proposal aiming to reduce leakage from 401(k) plans when employees change jobs -- a program developed by Retirement Clearinghouse (RCH) known as auto-portability. The proposal would give RCH a five-year exemption from certain restrictions, allowing the automatic transfer of 401(k) balances to a new employer plan. The comment period, notes Padalka, ends Dec. 24th.

Can You Successfully Automate Your Retirement Savings?

Forbes contributor Rick Unser, a 401(k) plan consultant and host of the 401(k) Fridays podcast, looks to the future and predicts four key 401(k) automation features he believes will deliver significant benefits for participants. Citing job-changing as "one of the single most significant threats to a secure retirement" -- Unser identifies auto portability as an "emerging solution (that) will help with...the challenge" and "will move your retirement savings from your retirement plan at your old company to the retirement plan at your new one."

Forbes: DOL To Help Job Hoppers With High-Stakes 401(k) Choices

Forbes contributor Christian Weller, a professor of public policy at the University of Massachusetts Boston and a senior fellow at the Center for American Progress, links the trend of increased job-changing in a strong labor market to the challenges of moving retirement savings forward. Acknowledging the inherent difficulties in managing multiple accounts and the hazards of cashing out, Weller points to the RCH auto portability program as a highly-positive development, stating that "the approach appears successful in reducing leakage and increasing workers’ retirement account balances."

Forbes: The 11 Most Significant 401(k) Plan Misconceptions

On 11/25/18, Forbes contributor Robert C. Lawton provides readers with a list of the "11 most significant 401(k) plan misconceptions." In misconception #3, titled "Rolling a 401(k) account into an IRA is a good idea" - Lawton suggests that, for many, rolling over a 401(k) to an IRA may not be in their favor. When it comes to small-balance job-changers, Lawton cites the DOL's recent actions on auto portability, stating that "the Department of Labor agrees, as shown in its recent auto portability proposal."

Forbes Article Cites RCH National Cashout Clock

In Forbes, John Wasick cites the RCH National Retirement Savings Cashout Clock's relentless advance, and provides readers with 4 ways to avoid a 401(k) cashout.

Forbes Article Quotes RCH Job-Changing, Cashout Leakage Stats

Forbes' Ashlea Ebeling quotes RCH job-changing, cashout leakage statistics

Forbes: How Millennials Are Sabotaging Their Retirement

Forbes' Ashlea Ebeling uses RCH's Auto Portability Simulation (APS) model to illustrate how Millennials are sabotaging their retirement.

Forbes, Next Avenue Cover WISER's Forum on Auto Portability

Forbes and Next Avenue contributor Kerry Hannon covers WISER's 9-30 Forum "The Leading Edge - Auto Portability: A Solution to Prevent Cash Outs & Preserve 401(k) Assets."

ForexTV: Are Traditional 401(k) Plans Ready for Retirement?

ForexTV's Timothy Kelly chronicles some of the woes experienced by 401(k) plan sponsors and suggests that Retirement Clearinghouse -- through portability -- can help solve the problems.

RCH in ForexTV: Why Retirement Plan Auto Portability is Important to Every Plan Sponsor

ForexTV's Tim Kelly explores Auto Portability, and makes a strong case that it's important to every plan sponsor, due to America's mobile workforce and adverse outcomes at job change.

Fox News: Laura Ingraham Addresses Auto Portability

Fox News opinion journalist Laura Ingraham takes note of the RLJ Companies founder and RCH majority owner Robert L. Johnson's appearance at an event for the signing of an Executive Order, where Mr. Johnson commended the administration, the Department of Labor and Sen. Tim Scott (R-SC), for their support of auto portability. Ingraham quotes Mr. Johnson as stating that "(auto portability) will put back close to $800 billion back in the retirement pockets of minority Americans. So I just want to applaud you for that."

DOL Auto-Portability Approval May Ease Rollovers, Reduce Missing Participants

Arris Reddick Murphy, Contributing Editor to HR Daily Advisor, and senior counsel with FedEx Corp.’s Tax & Employee Benefits Law group, examines the potential impact of the Department of Labor's recent actions towards RCH's auto portability program. Murphy outlines the strategic benefits for plan sponsors who participate in the auto portability program, including a reduction in small accounts, missing participants and uncashed checks. Murphy also points out the importance of participation of both plan sponsors and service providers, stepping through various aspects of the program, while offering planning tips for participating plan sponsors.

Inc.: Switching Jobs? Your 401(k) Balance Could Be Automatically Transferred Under a New Federal Rule

Inc. features a syndicated piece by Myles Ma, originally published in Policygenius Magazine, examining the Department of Labor's recent, favorable actions on the RCH auto portability program. Taking a balanced approach, Ma explains the importance of the auto portability program in helping solve the "cash-out crisis", discusses how the program works, consults experts for their opinion and notes the public comment period, which ends Dec. 24th.

Auto Porting Old 401(k) Balances Could Save $2T: Report

In his 8/22/19 article, Ingites' Emile Hallez reports on the Employee Benefits Research Institute (EBRI) 8/15/19 Issue Brief, which projects significant public policy benefits from the application of auto portability to the problem of cashout leakage. Auto portability, says Hallez, represents "a single policy change...[that]...could increase U.S. retirement savings by as much as $2 trillion over 40 years." Hallez then links the EBRI research to recent guidance issued by the DOL for the RCH Auto Portability program.

401(k) Automatic Portability Gets Final DOL Nod

In his 8/06/19 article, Ignites reporter Emile Hallez addresses the US Department of Labor's "green light" to the RCH Auto Portability program, in the form of a final prohibited transaction exemption (PTE), issued 7/31/19. Hallez extensively quotes RCH President & CEO Spencer Williams, who emphasizes the importance of the PTE to the adoption of auto portability, as well as helping to "cure the missing participant problem" which he further characterizes as "a subject of intense interest among plan sponsors and recordkeepers." RCH EVP Tom Johnson is also quoted, offering his historical perspective on regulatory efforts and ongoing engagement with large recordkeepers.

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Ignites: DOL Proposes 401(k) 'Auto-Portability' Plan

Ignites reporter Joe Morris covers the U.S. Labor Department's announce of the proposed exemption of Retirement Clearinghouse (RCH) from ERISA rules, effectively permitting automatic transfers (roll-ins) of smaller 401(k) balances when participant leave jobs or are terminated -- a program known as auto-portability. The proposal, says Morris, "would task Charlotte-based Retirement Clearinghouse with running an auto-portability program, using RCH's electronic-records- matching technology."

Institutional Investor: Auto-Portability is the Next Step for 401(k) Innovation

In her article entitled "The Next Step for 401(k) Innovation: Auto-Portability" -- Institutional Investor's Frances Denmark highlights auto-portability and includes quotes from RCH's Spencer Williams and Northern Trust's Sabrina Bailey.

Northern Trust's Sabrina Bailey says Auto Portability is "factor to aid 401(k) asset retention"

In a 1/17/17 article by Frances Denmark in Institutional Investor, Northern Trust's Sabrina Bailey, head of defined contribution at Northern Trust, cites auto-portability as "another factor that may aid 401(k) asset retention."

Investment News: DOL proposes rule to reduce leakage in 401(k) plans

InvestmentNews reporter Greg Iacurci reports on the Department of Labor’s 11/7/18 proposed exemption for RCH “that’s meant to stanch the flow of money out of 401(k) plans, an issue that has long troubled retirement policymakers.” Iacurci notes policymaker concerns about 401(k) leakage, and cites research from the GAO, the Center for Retirement Research at Boston College (CRR) as well as supportive comments from Marcia Wagner, principal at The Wagner Law Group. RCH, notes Iarcurci, needs the exemption in order to receive a transfer fee, absent an individual’s consent.

InvestmentNews: Pension plans take lead on finding missing participants

InvestmentNews examines how plan sponsors and service providers, rather than waiting on guidance from Washington, are taking the lead in advancing solutions to deal with the missing participant problem in America's defined contribution system. RCH CEO Spencer Williams and EVP Neal Ringquist are both quoted in the article, which also mentions recent research conducted by RCH, as well the promise offered by auto portability's "auto locate" mechanism.

Department of Labor OKs Automatic Rollover Into New Employer's Retirement Plan

In an article appearing in legal intelligence site JDSupra.com, Ballard Spahr LLP's Edward Wegerson examines the impact of the DOL's recent actions towards the RCH Auto Portability program. Wegerson provides some historical background by noting prior, related regulatory initiatives over the last several years, and concludes by stating that "for many employers and participants in high turnover industries, [auto portability] will serve to preserve retirement accounts that will provide more participants with a more secure retirement with minimal effort."

Could this simple proposal help boost retirement savings?

In his 1/8/18 article in the Journal of Accountancy, Lou Carlozo examines auto portability, which has the potential to "impact the retirement plans of millions for the better." Carlozo details the progress auto portability is making with the Department of Labor, referencing the July 2017 letter from Senate Republicans. Carlozo extensively quotes RCH President & CEO Spencer Williams, as well as other industry experts, on the positive outlook for auto portability and its potential for solving the 401(k) "leakage" problem.

Kiplinger: How to Avoid Cashing Out Your 401(k)

Kiplinger's Brendan Pedersen examines the favorable impact that the U.S. Labor Department's ruling on auto portability could have on 401(k) cashout leakage. At a macro level, Pedersen cites figures from Deloitte Consulting, which show that cashouts by workers with less than $5,000 saved could cost Americans $2 trillion over the next decade. At the individual level, Pedersen uses an illustration provided by Mike Giefer, CFP, who states “if they don’t retire for 40 years, that money invested could have been worth $75,000.”

Law360: EBSA Floats Simplifying 401(k) Transition Upon Job Change

Law360's Emily Brill reports on the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) introduction of a proposal in support of RCH's auto portability program -- a proposal which Brill describes as "intended too allow workers to seamlessly transfer their retirement from one 401(k) plan to another when they change jobs."

RCH Auto Portability "Broke New Ground" in 2019, Says Law Firm Examining ERISA Guidance

Writing in Lexology.com, the law firm Eversheds Sutherland LLP addresses notable 2019 ERISA guidance promulgated by the Department of Labor, including Advisory Opinions, Field Assistance Bulletins and Prohibited Transaction Exemptions (PTEs). For the 7 PTEs finalized in 2019, they single out RCH and auto portability, stating: "One exemption broke new ground. PTE 2019-02 granted relief for RCH’s auto-portability program, with respect to certain fees charged in connection with the transfer of accounts to the plan of a participant’s new employer."

2018 in review - ERISA guidance

Writing in Lexology, Eversheds Sutherland LLP provides a retrospective of guidance issued in 2018 by the Department of Labor (DOL) under ERISA, highlighting the DOL's sole 2018 Advisory Opinion, which addressed the RCH Auto Portability program. Linking to their earlier analysis of the Advisory Opinion, the authors further speculate on the DOL's motives, stating that "auto portability offers a means to advance the important policy goal of preserving and improving the efficiency of retirement savings, which may account for DOL’s willingness to engage on this issue."

Rely on the IRA Market for New Business? Then Support Auto-Portability

In LIMRA's Secure Retirement Review, RCH President & CEO Spencer Williams makes the case that Auto Portability incubates & preserves small-balance retirement savings. As such, it has the potential to grow the market for advisers whose business model relies on IRA rollovers.

LIMRA Promotes Research Supporting Auto Portability

LIMRA's Secure Retirement Institute is promoting research that supports Auto Portability. LIMRA showcases the research in DConversations, including video from the 2016 Retirement Industry Conference, as well as multiple infographics providing important research.

Market Wrap with Moe Discusses 401k Auto Portability

Moe Ansari talks 401k auto portability with Kerry Pechter, publisher of the Retirement Income Journal.

MarketWatch: Combining small 401(k) accounts helps preserve retirement saving

In her 12/4/18 article in MarketWatch, noted economist and retirement researcher Alicia H. Munnell applauds the Department of Labor's favorable actions toward the RCH auto portability program. Munnell highlights the dilemma facing millions of Americans each year, who leave their jobs and cash out their retirement savings, and cites the ongoing efforts by RCH's Spencer Williams and Tom Johnson in crafting the solution, auto portability. Munnell aptly characterizes auto portability's recent progress as being "so lovely to see a win for the 401(k) system."

Also featured in Morningstar News (link)

RCH in MarketWatch: Rolling over retirement accounts now saves both time and money later

In his latest MarketWatch RetireMentors column, RCH CEO Spencer Williams modifies the familiar proverb “a stitch in time saves nine” for the benefit of 401(k) savers who have multiple retirement savings accounts.

RCH in MarketWatch: Advice for the Class of 2016 - Strive for 25

In his 6/03/16 MarketWatch column, RCH CEO J. Spencer Williams gives the Class of 2016 advice they’re not likely to hear in a Commencement Speech:"Strive for 25"

Alicia Munnell in MarketWatch: Supporting the RCH Goal of a Retirement Savings Clearinghouse

Alicia Munnell -- Boston College's Director, Center for Retirement Research -- comes down squarely in favor of a clearinghouse for the nation's 401(k) system.

Mercer Exec: Auto Portability 'Essential for Shoring Up US Retirement System'

In his capacity as Head of US Defined Contribution and Financial Wellness Research, Mercer's Neil Lloyd notes the recent emergence of serious industry dialogue on plan-to-plan retirement savings portability. Long a proponent of portability, Lloyd recognizes the inherent problems associated with holding multiple retirement saving accounts. In his piece, Lloyd strongly advocates for auto portability, stating that it "might be the solution to less efficient small-balance accounts." Lloyd goes further, opining that auto portability should be considered a legislative priority, writing that "SECURE ACT 2 will be vastly improved if provisions further supporting auto-portability are included."

Defined Contribution Auto-Portability Program Is First To Gain DOL Approval

Mercer's Law and Policy Group reports on the finalized prohibited transaction exemption (PTE) obtained by Retirement Clearinghouse from the U.S. Department of Labor (DOL) for the RCH Auto Portability program. The article also addresses the broader regulatory framework, including Advisory Opinion 2018-01A, which identified certain fiduciary responsibilities of plan sponsors and of RCH.

Alicia Munnell: Private Sector Answer to 401(k) Leakage is Getting Traction

In her 12/4/18 article in Morningstar News, noted economist and retirement researcher Alicia H. Munnell applauds the Department of Labor's favorable actions toward the RCH auto portability program. Munnell highlights the dilemma facing millions of Americans each year, who leave their jobs and cash out their retirement savings, and cites the ongoing efforts by RCH's Spencer Williams and Tom Johnson in crafting the solution, auto portability. Munnell aptly characterizes auto portability's recent progress as being "so lovely to see a win for the 401(k) system."

The Motley Fool Features Retirement Clearinghouse Cash Out Research

In her 12/06/17 article "Here's Why Cashing Out a 401(k) Is the Worst Money Mistake You Might Ever Make", The Motley Fool's Maurie Backman cites RCH cash out research, mentioning that "nearly 6 million employees are expected to cash out their 401(k)s within eight years of leaving their employers, according to data compiled by Retirement Clearinghouse."

NAPA Net Covers EBRI Issue Brief, Auto Portability

Following the release of a 10/31 EBRI Issue Brief and its 11/4 coverage in 401(k) Specialist, NAPA Net's Ted Godbout reports on EBRI's findings that auto portability, when paired with 2 policy initiatives -- a nationwide OregonSaves program and adoption of 401(k) safe harbor plans -- dramatically improves their benefits, as measured by projected reductions in the nation's retirement savings shortfall (RSS).

NAPA Net Reader Poll Highlights Issues of Leakage, Portability

On 10/11/19, NAPA Net released results of a reader survey addressing the problem of cashout leakage and yielding valuable perspectives on retirement savings portability. Regarding plan-to-plan portability, a theme “echoed repeatedly” was the “complex, manual process that requires significant form completion and coordination.” The poll further found that 82% of respondents had plan sponsor clients who would be interested in a program that automatically consolidated balances. Specifically referencing auto portability, 81% of respondents indicated that they would introduce such a program to a plan, with 75% opining that such a program would make it easier for participants to manage their retirement savings.

401(k) Auto-Portability Could Boost Retirement Savings by Billions

NAPA Net's Ted Godbout reports on a new EBRI study, released 8/15/19, that assesses the impact of auto portability on the nation's 401(k) system. Godbout highlights the benefits of auto portability to the entire system and to specific demographic groups, as well as the benefits of the feature when considered in tandem with other policy initiatives. Godbout concludes by noting that "these latest findings come on the heels of Retirement Clearinghouse receiving final approval from the Department of Labor granting relief from ERISA’s prohibited transaction restrictions to receive fees in relation to its auto-portability program, allowing the firm to move forward."

DOL Okays RCH's Auto-Portability Program

NAPA Net's Ted Godbout covers breaking news that the US Department of Labor has granted final approval to Retirement Clearinghouse (RCH) for a Prohibited Transaction Exemption (PTE) for the RCH Auto Portability program. As Godbout states, "the RCH Program seeks to help eliminate duplicative fees and reduce retirement savings leakage by providing individuals who are changing jobs with a way to transfer retirement assets from their prior employers’ plans to their new employers’ plans." Godbout also references the DOL's Advisory Opinion 2018-01A, issued in November 2018, and cites EBRI research indicating that system-wide adoption of auto portability for "smaller accounts alone would save $1.5 trillion."

Also featured in ASPPA Net

EBRI's VanDerhei Addresses PSCA Conference, Including Auto Portability Update

ASPPA Net's John Iekel covers EBRI Research Director Jack VanDerhei's 5/1/19 presentation before the PSCA National Conference, where VanDerhei provided an update on auto portability's benefits, as calculated in EBRI's Retirement Security Projection Model (RSPM). According to Iekel, VanDerhei asserted that "introducing auto-portability for participants who are Gen Xers reduced retirement savings shortfalls for couples regardless of which dies first, and for single people regardless of gender."

Also Featured in NAPA Net (link)

NAPA Net Cites EBRI Research on Women, Auto Portability

In his 1/24/19 NAPA Net article "EBRI: Single Women Face Significant Retirement Savings Shortfall", reporter Ted Godbout joins other media outlets in analyzing new EBRI research that projects a significant retirement savings shortfall for Generation X's women -- particularly single women and widows. Godbout also draws attention to EBRI's finding that auto portability, when applied to the problem, will result in "at least a double-digit percent reduction in the shortfall for all groups."

NAPA Net: DOL Greenlights RCH Auto Portability Program

NAPA Net's Ted Godbout reports on the U.S. Department of Labor's (DOL) recent issuance of an advisory opinion regarding Retirement Clearinghouse's (RCH) auto portability program, occurring "mere days after publishing a request for comments on a proposed exemption." Godbout examines specific aspects of the advisory opinion, including the creation of a safe harbor for plan sponsors who accept automated transfers, as well as the fiduciary status of RCH in deciding to transfer default IRA funds.

NAPA Net: DOL Seeks Input on Auto Portability

NAPA Net’s Ted Godbout informs his readership about the Labor Department’s 11/7/18 request for public comment on an auto-portability program, and notes the DOL’s Employee Benefit Security Administration (EBSA) announcement of a notice of proposed exemption for RCH from restrictions that “would allow the firm to move forward with its auto-portability program.” Godbout goes on to cite the broad-based support for auto-portability, including bipartisan political support for a DOL Advisory Opinion on auto-portability, and research by EBRI. Finally, Godbout quotes RCH President/CEO Spencer Williams on key job-changer statistics.

NAPA Net Readers Put Auto Portability on "Next Big Things" List for 2019

On 10/5/18, NAPA Net released the results of a reader poll, asking NAPA Net readers to identify the "next big things" in 2019. Auto Portability came in #7 on the list, ahead of perennial favorites such as "behavioral finance techniques" and "financial wellness." #1 on the list were multiple employer plans, or "open MEPs" - which was cited by 56% of respondents.

NAPA Net: RCH's Tom Johnson Addresses Leakage & Portability at WISER Forum

Covering the WISER forum "The Millennial Perspective: An Intergenerational Discussion on Retirement Savings", NAPA Net's Ted Godbout includes reporting on RCH EVP Tom Johnson, who wowed the WISER crowd with 401(k) cashout leakage and portability statistics. Citing data from the GAO, the EBRI Retirement Security Projection Model (RSPM) and other sources, Johnson made the point that Millennials, including gig workers, will stand to benefit greatly from retirement savings portability solutions, including auto portability.

NAPA Net Covers Women's 401(k) Cashout Stats, Features RCH Research

NAPA Net's Ted Godbout covers the May 22nd WISER roundtable, where RCH EVP Tom Johnson revealed new statistics highlighting the cashout problem for women with small 401(k) balances. Godbout goes on to examine the "portability solution" -- where auto portability could preserve the savings of 1 million women, on an annual basis, and 42 million women over a generation.

Helping Plan Sponsors Deal with the Missing Participant Problem

In his 5/17/18 article for NAPA Net, noted industry researcher Warren Cormier takes a deep dive into the problem of missing participants, summarizing the findings of a recent Retirement Clearinghouse (RCH) study that measured the magnitude of the problem, identified participant behaviors and uncovered important demographic trends. In search of solutions, Cormier turns to RCH CEO Spencer Williams, and their discussion focuses on "Auto Locate" as the most-promising financial technology to address the problem.

NAPA Net: Can Automation Help Solve the Missing Participant Problem?

NAPA Net's Ted Godbout covers the recently-released survey of missing participants, joint research conducted by Boston Research Technologies and Retirement Clearinghouse. Godbout highlights the survey's key findings, quoting BRT's Warren Cormier, and drawing attention to the high percentage of respondents (60%) who expressed a preference for an automated solution to update their address and/or consolidate their retirement savings.

NAPA Net's Ted Godbout Covers Boston Research Technologies White Paper on Auto Portability

In his 12/6/17 article in NAPA Net, Ted Godbout covers the recent Boston Research Technologies white paper “Making the Right Choice the Easiest Choice: Eliminating Friction and Leaks in America’s Defined Contribution System” -- which documents the key findings of the initial market launch of auto portability.

NAPA VP Janine Stout Supports Auto Portability Before Congress

Testifying before a July 19 House Ways & Means Subcommittee on Tax Policy, NAPA Vice President Jania Stout offered her support for auto portability.

NAPA Net: Senators to Urge DOL to Issue Guidance on Auto Portability

NAPA Net's Ted Gobbout reports that U.S. Sen. Tim Scott (R-S.C.) will deliver a letter to Labor Secretary Alexander Acosta, urging DOL guidance on auto portability.

NAPA Net Covers 6/21 WISER Forum, Quotes Spencer Williams

NAPA Net's Ted Godbout attends the 6/21 WISER Forum on retirement issues, extensively quoting RCH President & CEO Spencer Williams.

With Auto Portability, you can take it with you, says NAPA Net's Nevin Adams

Addressing the latest research conducted by EBRI on Auto Portability, and presented at the 3/30/17 FSR event in Washington, DC, NAPA Net's Nevin Adams discusses the benefits that Auto Portability can deliver in reducing 401(k) cashout leakage.

ASPPA Net Headlines RCH Cashout Leakage Article

On 12/12/16, ASPPA Net staff included the 11/30/16 BenefitsPro article “Preventing retirement plan leakage: An infrastructure project that saves trillions” by RCH's Tom Hawkins in their website's news headlines, reiterating the major points in the article.

RCH Portability in the National Law Review

In her 7/26/16 article in the National Law Review, Michelle Capezza addresses the fundamental changes in our workforce (the "Gig Economy") that are driving the need for portable benefits. Capezza states that RCH -- through promotion of Auto Portability -- is one of the ways that this new portability is becoming manifested in the Gig Economy.

Wait, Where Did My 401(k) Account Go?

NBC News examines the need for a retirement clearinghouse; quotes RCH President & CEO Spencer Williams

Northern Trust Research Says Auto Portability is What's Next

In Northern Trust's research entitled "The Path Forward: Defined Contribution Plans Can Achieve More" Auto Portability is identified as one of two key DC plan features that will positively impact DC plan performance.

Is Auto-Portability the Next Big 401(k) Trend?

Paychex Retirement Services' 2/15/17 article provides an in-depth exploration of auto portability.

401(k) auto portability making critical turn toward acceptance

In his 10/28/19 article in Pensions & Investments, reporter Brian Croce examines the "critical turn toward acceptance" that the Retirement Clearinghouse (RCH) auto portability program has made, following the "green light" the program received from the U.S. Department of Labor. In the piece, Groom Law Group's Michael Kreps characterizes the DOL's actions as the "starting gun", while RCH's Spencer Williams and Neal Ringquist provide important updates on progress-to-date with 401(k) recordkeepers. Tim Rouse, executive director of SPARK, an industry group representing recordkeepers, voices his support for auto portability, while ERIC's Aliya Robinson states that "once [auto portability] hits critical mass I think it's something we'll see pretty widely across the retirement system."

Auto portability would reduce plan leakage – EBRI study

P&I's Brian Croce reports on the new EBRI study examining the impacts of auto portability, finding that the plan feature "would significantly reduce plan leakage" -- estimated by EBRI at $92.4 billion per year. Croce recaps the impressive benefits projected for auto portability under EBRI's RSPM model, and notes the recent actions by the U.S. Department of Labor, who "gave Retirement Clearinghouse the green light to expand its auto-portability program, which is expected to reduce plan leakage and missing participants."

Auto portability program gets thumbs up by regulators

In his 7/31/19 article, P&I Legal and Regulatory reporter Brian Croce covers the Department of Labor's issuance of their final prohibited transaction exemption (PTE) for RCH Auto Portability, stating that the DOL's action "gave Retirement Clearinghouse LLC the green light ..to expand its auto-portability program, which is expected to reduce plan leakage and missing participants." Croce quotes Robert L. Johnson, founder and chairman of The RLJ Companies, as well as RCH Founder, President and CEO Spencer Williams.

P&I: EBRI Study Examines Legislative Proposals, Highlights Benefits of Auto Portability

Pensions & Investments' Hazel Bradford reports on the latest EBRI research to examine legislative proposals, including auto-IRAs, that would expand retirement plan coverage. The EBRI study, notes Bradford, finds that "along with mandating that employers with more than 10 workers provide access to auto IRAs and raising the IRS' auto-escalation cap to 15% from the current 10%, EBRI calculated that auto-portability of all defined contribution assets through a clearinghouse would reduce the retirement deficit by 27.1%." Bradford further quotes EBRI Director of Research Jack VanDerhei, who adds: "[w]ith that combination, we can take care of a quarter of the retirement deficit alone for that age cohort."

P&I Article on DOL Guidance Mentions Auto Portability

In his 4/29/19 article, P&I's Brian Croce addresses the deliberate pace of guidance offered by the Department of Labor (DOL) over the last two years. The article notes that the DOL's advisory opinion "issued for Retirement Clearinghouse LLC over expansion of its auto portability program to reduce plan leakage" was one of two issued thus far, and the only advisory opinion issued in 2018. The article also highlights the ongoing emphasis of the DOL on enforcement & recovery activities with regard to missing participants, a topic of concern for plan sponsors.

P&I: Experts optimistic over auto-portability proposal

Pensions & Investments' Washington reporter Brian Croce examines the RCH auto portability program, following the DOL's November guidance. Croce outlines key aspects of the RCH program, quoting noted Washington-based ERISA expert Michael P. Kreps, who states that a key outcome of the DOL's Advisory Opinion is to "provide plan sponsors with additional certainty that they're not taking on additional fiduciary responsibility or risk by selecting this product." Croce also quotes RCH CEO Spencer Williams, Boston College's Alicia Munnell and the American Benefits Council's Lynn Dudley.

P&I features RCH in "Plans take lead to find the missing"

P&I's Meaghan KIlroy examines how plan sponsors and service providers, rather than waiting on guidance from Washington, are taking the lead in advancing solutions to deal with the missing participant problem in America's defined contribution system. RCH CEO Spencer Williams and EVP Neal Ringquist are both quoted in the article, which also mentions recent research conducted by RCH, as well the promise offered by auto portability's "auto locate" mechanism.

P&I: Auto portability viewed as way to reduce number of missing participants

In an article featured on the cover of Pensions & Investments, P&I's Meaghan Kilroy interviews RCH executives Spencer Williams and Neal Ringquist on RCH's auto portability program, and its promise to address the issue of missing, terminated participants. Williams and Ringquist provide an update on auto portability, including the recent implementation with a mega plan sponsor, the pending DOL advisory opinion and participation by DC recordkeepers,

Washington offers hope over retirement security

P&I's Hazel Bradford sees progress towards auto portability as a sign of hope that DC policymakers could act to shore up Americans' retirement security. Spencer Williams quoted.

P&I: Obama Calls for More Retirement Savings Portability in Address

Pensions & Investments highlights President Obama's call for more retirement savings portability, in his final State of the Union address.

Newly Sanctioned Auto Portability Solution Could Boost Retirement Savings by Trillions

In her 8/23/19 article, carried in both PLANSPONSOR and PlanAdviser, reporter Rebecca Moore links the most-recent regulatory actions from the DOL on the RCH Auto Portability program with the 8/15/19 EBRI Issue Brief, which projects the overall, 40-year present value of auto portability at nearly $2 trillion. Moore addresses the key findings from the latest EBRI research, which include new projections of 401(k) cashout leakage ($92.4 billion in 2015), projections of auto portability as a standalone policy initiative, auto portability paired with other legislative proposals, and finally, the beneficial impact of auto portability on specific demographic segments.

Also featured in PlanAdviser

DOL Exemption Paves Way for Auto Portability

PLANSPONSOR's Lee Barney covers the DOL's final prohibited transaction exemption (PTE) for the RCH Auto Portability program, interviewing RCH President and CEO Spencer Williams. In the article, Williams characterizes the DOL's action as the final regulatory guidance required for plan sponsors and recordkeepers to pursue the program, indicating that he is very encouraged, having worked the issue for five years, adding: "we are very passionate about creating a new benefit for participants and solving the leakage issue.”

Also featured in PlanAdviser

Preparing Employees for Retirement, a Global Comparison

PLANSPONSOR's Amanda Umpierrez reports on the major findings from the 2019 Aegon Retirement Readiness Survey, which provided a comparative analysis of retirement readiness in countries around the world. Summarizing the key takeaways for employers, Umpierrez turns to Transamerica's Catherine Collison, who suggests "that the U.S. government can require employers to offer auto-enrollment in retirement plans......and can continue efforts to implement retirement plan auto-portability."

Also featured in PlanAdviser

Legislative Proposals Could Help Retirement Income Adequacy: EBRI

In her 7/12/19 article, PLANSPONSOR's Rebecca Moore reports on the latest EBRI research to address legislative proposals that expand access to employer-sponsored retirement plans. Once again, the EBRI findings reveal the highly-beneficial, additive impact of auto portability, when considered in tandem with other policy initiatives. The EBRI analysis, which examined various scenarios involving the widespread adoption of auto-IRA programs, found that adding auto portability to the mix resulted in the youngest cohort (35-39) realizing a reduction in their retirement savings shortfall (RSS) of 27.1% under auto portability, vs. 17.3% without the auto portability feature.

Also featured in PlanAdviser.

Rolling Over Retirement Assets Creates Greater Retirement Income Adequacy

PLANSPONSOR's Rebecca Moore examines new research from EBRI that quantifies the beneficial impact of retirement savings portability, via rollovers to IRAs or to other DC plans. In EBRI's analysis, every age cohort realized significant increases in retirement income adequacy when their balances moved forward, highlighting the importance of keeping balances in the retirement system and avoiding cashout leakage. Tying EBRI's analysis to related regulatory initiatives, Moore noted Retirement Clearinghouse's pending, prohibited transaction exemption (PTE) for the use of their auto portability solution.

Also featured in PlanAdviser

PlanAdviser: Senate Testimony Supports Auto Portability

PlanAdviser's Rebecca Moore, covering testimony offered to the Senate Special Committee on Aging, reports that Gene L. Dodaro, Comptroller General of the United States and head of the Government Accountability Office (GAO) "touted automatic enrollment and auto portability as ways DC plan enrollment and contribution levels can be encouraged." The Committee's hearing, held 2/6/19, addressed the topic "Financial Security in Retirement: Innovations and Best Practices to Promote Savings" and also included testimony from John Scott (The Pew Charitable Trusts), Linda K. Stone (WISER) and Denis St. Peter (CES, Inc.).

DB vs DC Outcomes Determined by Generosity, Design

Examining the 2/7/19 EBRI Research Brief comparing DB vs. DC plans, PlanAdviser's John Manganaro cites the study as finding that DB break-even accrual rates required for equivalency to their 401(k) counterparts are "rarely less than 1.5% of final pay." Under a scenario where auto portability is combined with the 401(k) plans, the DB break-even accrual rates increase further to deliver equivalency, with auto portability's impact "greatest among the lowest income quartile."

2018 Regulatory Highlights for Plan Advisers and Their Clients

PlanAdviser identifies the most-impactful 2018 regulatory developments that will affect plan advisers and their clients moving into the New Year. The DOL's November 2018 Advisory Opinion on the RCH Auto Portability program, which clarified fiduciary roles under the program, is high atop the list.

PlanAdviser: ERISA Industry Stakeholders Analyze Auto-Portability Potential

Following the U.S. Department of Labor's actions on auto portability, PlanAdviser seeks input from industry stakeholders affected by the program, including Callan's Jana Steele, J.P. Morgan's Anne Lester and the Wagner Law Group. J.P. Morgan's Steele, the article states, believes that "auto-portability is the next natural extension of plan design innovations from the past decade, including auto-enrollment, auto-escalation, and auto-investment allocation via target-date funds and managed accounts."

PlanAdviser: Fiduciary Duties for Auto-Portability Solution Spelled Out by DOL

PlanAdviser reports on the Department of Labor's issuance of an advisory opinion letter in response to a request by Retirement Clearinghouse (RCH), for their opinion on the fiduciary status of parties as part of RCH’s Auto-Portability Program. The article notes that plan sponsors have a fiduciary responsibility for selecting and monitoring the auto portability program, but once assets are transferred to a default IRA under the program, the plan sponsor of the former employer's plan is no longer a fiduciary.

PlanAdviser: DOL Asks for Input on Retirement Plan Auto-Portability

PlanAdviser's Rebecca Moore details the DOL’s 11/7/18 notice of a proposed exemption from restrictions of the Employee Retirement Income Security Act (ERISA) to RCH for use of its auto-portability solution. The DOL, says Moore, has “tentatively determined that the proposed exemption is protective of affected plan participants” and notes initial results of the use auto-portability at a plan sponsor, as well as previous support from Congressional legislators, including U.S. Senator Tim Scott, R-S.C.

PlanAdviser: Retirement Outcomes of Cashed Out Plan Participants Worse Than Missing Participants

PlanAdviser's Rebecca Moore reviews research by Retirement Clearinghouse that looks at the related problems of 401(k) missing participants and cashouts. The RCH analysis is based upon RCH's Auto Portability Simulation and Boston Research Technologies' March 2018 Missing Participant Survey comparing and contrasting the two problems from a systemic perspective, The article concludes that auto portability could serve as a strategic solution to minimize both. Moore's piece also references a previous article by RCH CEO Spencer Williams, and quotes RCH's Neal Ringquist and Tom Hawkins.

PLANADVISER: Stranded Retirement Accounts Bigger Problem for Low Income, Millennials

PLANADVISER covers the 3/13/18 release of the joint Boston Research Technologies / Retirement Clearinghouse Missing Participant Survey, recapping the survey's key findings, and mentioning earlier research conducted by Retirement Clearinghouse on simulating the effects of auto portability.

PLANADVISER: Results From Use of Auto Portability Product Released

Spencer Williams, from Retirement Clearinghouse, says the findings show the potential to preserve trillions of future retirement savings dollars for retirement plan participants through the widespread adoption of auto portability.

PLANADVISER Compliance News Discusses Auto Portability Activities

In their Sept/Oct 2017 edition, PLANADVISER's Compliance News recounts activities aimed at moving Auto Portability forward, including Sen. Tim Scott's letter to DOL Secretary Acosta.

PLANADVISER: EBRI Calls for Auto Plan Portability

PLANADVISER reports EBRI's latest research call for Auto Portability, stating that if workers could automatically roll their 401(k) plan over to a new employer, this could generate an additional $2 trillion in retirement savings.

Recommendations to ERISA Advisory Council Include Auto Portability

PlanAdviser reports on the newly-published recommendations by the ERISA Advisory Council, which include facilitating Auto-Portability.

PLANADVISER, RCH CEO Address Stranded Accounts

Interviewed by PLANADVISER, RCH CEO Spencer Williams addresses the growing problem of stranded accounts in America's defined contribution system.

Ways to Combat Pervasive Leakage

PLANSPONSOR's Lee Barney reports on the Savings Preservation Working Group's recent analysis (link) of the problem of 401(k) cashout leakage, estimated to be between $60 billion and $105 billion per year, and affecting 33% to 47% of job-changing participants. The report -- the most-comprehensive analysis of cashout leakage to date -- represents a meta-analysis of studies conducted by EBRI, large recordkeepers, the Government Accountability Office (GAO), Boston Research Technologies and RCH's own Auto Portability Simulation. The SPWG's conclusions were reviewed and validated by a team of industry experts, trade associations and advocacy groups, and specifically acknowledges the contributions of RCH's Spencer Williams, Tom Johnson and Tom Hawkins.

A National Program Like OregonSaves Would Reduce Retirement Deficit

PLANSPONSOR reporter Lee Barney joins the chorus of media coverage of the EBRI Issue Brief examining 2 policy initiatives -- a nationwide expansion of an OregonSaves-like program, as well as the adoption of 401(k) safe harbor plans. While the EBRI analysis found that both initiatives delivered significant benefits in the form of reductions to the nation's retirement deficit, the addition of auto portability delivered even more-dramatic benefits to both by reducing the amount of cashout leakage experienced by job-changing participants.

Newly Sanctioned Auto Portability Solution Could Boost Retirement Savings by Trillions

In her 8/23/19 article, carried in both PLANSPONSOR and PlanAdviser, reporter Rebecca Moore links the most-recent regulatory actions from the DOL on the RCH Auto Portability program with the 8/15/19 EBRI Issue Brief, which projects the overall, 40-year present value of auto portability at nearly $2 trillion. Moore addresses the key findings from the latest EBRI research, which include new projections of 401(k) cashout leakage ($92.4 billion in 2015), projections of auto portability as a standalone policy initiative, auto portability paired with other legislative proposals, and finally, the beneficial impact of auto portability on specific demographic segments.

Also featured in PlanAdviser

DOL Exemption Paves Way for Auto Portability

PLANSPONSOR's Lee Barney covers the DOL's final prohibited transaction exemption (PTE) for the RCH Auto Portability program, interviewing RCH President and CEO Spencer Williams. In the article, Williams characterizes the DOL's action as the final regulatory guidance required for plan sponsors and recordkeepers to pursue the program, indicating that he is very encouraged, having worked the issue for five years, adding: "we are very passionate about creating a new benefit for participants and solving the leakage issue.”

Also featured in PlanAdviser

Preparing Employees for Retirement, a Global Comparison

PLANSPONSOR's Amanda Umpierrez reports on the major findings from the 2019 Aegon Retirement Readiness Survey, which provided a comparative analysis of retirement readiness in countries around the world. Summarizing the key takeaways for employers, Umpierrez turns to Transamerica's Catherine Collison, who suggests "that the U.S. government can require employers to offer auto-enrollment in retirement plans......and can continue efforts to implement retirement plan auto-portability."

Also featured in PlanAdviser

Legislative Proposals Could Help Retirement Income Adequacy: EBRI

In her 7/12/19 article, PLANSPONSOR's Rebecca Moore reports on the latest EBRI research to address legislative proposals that expand access to employer-sponsored retirement plans. Once again, the EBRI findings reveal the highly-beneficial, additive impact of auto portability, when considered in tandem with other policy initiatives. The EBRI analysis, which examined various scenarios involving the widespread adoption of auto-IRA programs, found that adding auto portability to the mix resulted in the youngest cohort (35-39) realizing a reduction in their retirement savings shortfall (RSS) of 27.1% under auto portability, vs. 17.3% without the auto portability feature.

Also featured in PlanAdviser.

Rolling Over Retirement Assets Creates Greater Retirement Income Adequacy

PLANSPONSOR's Rebecca Moore examines new research from EBRI that quantifies the beneficial impact of retirement savings portability, via rollovers to IRAs or to other DC plans. In EBRI's analysis, every age cohort realized significant increases in retirement income adequacy when their balances moved forward, highlighting the importance of keeping balances in the retirement system and avoiding cashout leakage. Tying EBRI's analysis to related regulatory initiatives, Moore noted Retirement Clearinghouse's pending, prohibited transaction exemption (PTE) for the use of their auto portability solution.

Also featured in PlanAdviser

Shorter Employee Tenure Demands Progressive Plan Design

PLANSPONSOR's Amanda Umpierrez examines the latest research from EBRI revealing decreasing employee tenure, concluding that shorter tenure could adversely impact retirement plan success. Umperriez quotes RCH EVP Neal Ringquist, who ties decreasing tenure to destructive outcomes, such as cashing out, and RCH CEO Spencer Williams, who advocates for immediate plan eligibility and adoption of automatic enrollment provisions. Finally, EBRI's Craig Copeland, author of the research, addresses the beneficial impact of auto portability, stating that “[a]uto-portability will play an increasingly important role because it helps a lot with balance preservation.”

Asset Consolidation: Facilitating participant roll-ins

In its Feb-March 2019 edition, PLANSPONSOR Magazine addresses the topic of asset consolidation, taking the position that plan sponsors who promote in-plan consolidation (“roll-ins”) are benefiting both their plans and participants. The article cites key findings from RCH’s 2015 Mobile Workforce study, and quotes RCH President & CEO Spencer Williams, who maintains that a clear connection exists between roll-ins and financial wellness. Finally, the article updates readers on auto portability, with the DOL‘s November 2018 actions providing clarity for RCH's Auto Portability program, and as Williams explains, “set[ting] a new standard of care for automatic rollovers.”

2019 Retirement Outlook and Investment Insights Features Auto Portability

In PLANSPONSOR's Industry Voices, Jonathan Barry, senior retirement strategist at MFS Investment Management, discusses key trends retirement plan sponsors may expect to see in 2019, the issues they may face and offers his thoughts on how to address them. Turning to auto portability, Barry states that recent advances represent an "important step that will help with the issue of 'disrupted journeys,' which has become increasingly prevalent with more Americans working multiple jobs over their career."

PLANSPONSOR: Senate Testimony Supports Auto Portability

PLANSPONSOR's Rebecca Moore, covering testimony offered to the Senate Special Committee on Aging, reports that Gene L. Dodaro, Comptroller General of the United States and head of the Government Accountability Office (GAO) "touted automatic enrollment and auto portability as ways DC plan enrollment and contribution levels can be encouraged." The Committee's hearing, held 2/6/19, addressed the topic "Financial Security in Retirement: Innovations and Best Practices to Promote Savings" and also included testimony from John Scott (The Pew Charitable Trusts), Linda K. Stone (WISER) and Denis St. Peter (CES, Inc.).

EBRI Reassesses Whether DC or DB Plans Are Better for Participants

PLANSPONSOR's John Manganaro examines EBRI Research Brief #473, released 2/7/19, which compares the outcomes of participants in automatic enrollment 401(k) plans versus defined benefit (DB) plans. Manganaro quotes the study as finding that DB break-even accrual rates required for equivalency to their 401(k) counterparts are "rarely less than 1.5% of final pay." Under a scenario where auto portability is combined with 401(k) plans, the DB break-even accrual rates increase further to deliver equivalency, with auto portability's impact "greatest among the lowest income quartile."

PLANSPONSOR: Groom's Saxon Welcomes DOL's Auto Portability Guidance

In the January 2019 edition of PLANSPONSOR magazine, Groom Law Group's Stephen Saxon welcomes the U.S. Department of Labor's (DOL) November 2018 guidance on the RCH auto portability program. The DOL, says Saxon, "clarifies important questions about the fiduciary implications for plan sponsors" and provides "much welcome comfort" to plan fiduciaries considering the program. Saxon concludes his analysis by stating that "auto-portability will have a positive, long-term impact on the U.S. retirement system by reducing leakage and enabling American workers to consolidate their small retirement balances on an efficient basis."

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PLANSPONSOR: EBRI Links Women's Retirement Security, Auto Portability

PLANSPONSOR's Rebecca Moore examines new EBRI research that demonstrates the "large impact" that auto portability can have on reducing Gen Xer women's retirement savings shortfalls. When EBRI adds auto portability to their projection model, Moore reports that the average shortfall for those with 21 to 30 years of future DC eligibility is reduced by 21% for single females to as much as 38% for widowers.

Michael Barry Gives DOL an 'A' on Auto Portability

In his ongoing "Barry's Pickings" column for PLANSPONSOR, Michael Barry, president of O3 Plan Advisory Services LLC, gives the U.S. Department of Labor an 'A' for its November 2018 issuance of a proposed Prohibited Transaction Exemption (PTE) and an Advisory Opinion on Auto Portability. Barry adds: "as a long-time advocate of the establishment of a clearinghouse, I view this as very good news."

PLANSPONSOR's 2018 Retrospective Features Auto Portability

PLANSPONSOR's John Manganaro, in this year-end retrospective, runs down the key regulatory developments affecting plan sponsors in 2018. High on Manganaro's list is the U.S. Department of Labor's November Advisory Opinion on the RCH Auto Portability program, which clarified fiduciary roles under the program.

PLANSPONSOR: Stakeholders Say Auto-Portability Complements Modern Plan Design

In the wake of the U.S. Department of Labor's actions on auto portability, PLANSPONSOR's John Managaro follows up with key stakeholders affected by the program, including J.P. Morgan's Anne Lester, the Wagner Law Group and Callan's Jana Steele, who concludes that "auto-portability is the next natural extension of highly successful plan design innovations from the past decade."

PLANSPONSOR: DOL Clarifies Fiduciary Roles in Auto-Portability Solution

PLANSPONSOR's Rebecca Moore reports on the U.S. Department of Labor's (DOL) issuance of an advisory opinion letter, focusing on plan sponsors' responsibilities as identified by the DOL. Moore notes that plan sponsors have a fiduciary responsibility for selecting and monitoring the auto portability program, but once assets are transferred to a default IRA under the program, the plan sponsor of the former employer's plan is no longer a fiduciary.

PLANSPONSOR: DOL Proposes Exemption for Retirement Plan Auto-Portability Solution

PLANSPONSOR’s Rebecca Moore details the DOL’s 11/7/18 notice of a proposed exemption from restrictions of the Employee Retirement Income Security Act (ERISA) to RCH for use of its auto-portability solution. The DOL, says Moore, has “tentatively determined that the proposed exemption is protective of affected plan participants” and notes initial results of the use auto-portability at a plan sponsor, as well as previous support from Congressional legislators, including U.S. Senator Tim Scott, R-S.C.

PLANSPONSOR Highlights 401(k) Consolidation Issue, Need for Auto Portability

In the August/September 2018 print edition of PLANSPONSOR, Editor-in-Chief Allison Cooke Mintzer addresses the problem of 401(k) cashouts, highlighting the need for consolidation via auto portability in her Insights column piece entitled "Making the Most of Savings: Is your plan designed to allow for employees to roll in their assets from a former plan?" Cooke Mintzer suggests to her plan sponsor audience that helping participants aggregate assets should "be near the top of your priority list, alongside the recent industry focus on financial wellness and debt management." Cooke Mintzer also cites statistics provided by RCH CEO Spencer Williams, noting the dramatic decrease in cashouts that occurs as balance levels rise above $20,000.

Auto-Portability, Universal Coverage Would Reduce Retirement Shortfall

PLANSPONSOR's Lee Barney addresses new research released by EBRI, which models the effects of the Automatic Retirement Plan Act of 2017 (ARPA), and then combines ARPA with auto portability. The EBRI research reveals that if ARPA were to be combined with auto portability, the retirement savings shortfall (RSS) would dramatically reduce the $4.3 trillion deficit by $932 billion, or 22.6%.

PLANSPONSOR Features RCH Analysis on Missing Participants and Cashouts

PLANSPONSOR's Rebecca Moore examines recent analysis by Retirement Clearinghouse that looks at the twin problems of 401(k) missing participants and cashouts. The RCH analysis, based upon RCH's Auto Portability Simulation and Boston Research Technologies' March 2018 Missing Participant Survey, compares and contrasts the two problems from a systemic perspective, and offers auto portability as a strategic solution to minimize both. Moore's piece also references a previous article by RCH CEO Spencer Williams, and quotes RCH's Neal Ringquist and Tom Hawkins.

CRR Offers Retirement Policy Suggestions to the DOL

PLANSPONSOR’s Rebecca Moore examines the Center for Retirement Research’s (CRR) report “An Analysis of Retirement Models to Improve Portability and Coverage,” presented to the Department of Labor in February 2018. One of the report’s key recommendations includes the establishment of a clearinghouse to automatically move small balances forward, a framework now widely-known as auto portability.

PLANSPONSOR: Insights on Retirement Plan Stranded Accounts

PLANSPONSOR's Rebecca Moore covers the 3/13/18 release of the joint Boston Research Technologies / Retirement Clearinghouse Missing Participant Survey, recapping the survey's key findings, and mentioning earlier research conducted by Retirement Clearinghouse in simulating the effects of auto portability.

PLANSPONSOR: Retirement Clearinghouse Releases Findings From Auto Portability Use

Results from the firm’s product use by one plan sponsor found that upon consolidation, workers' median plan account balance increased by 46% and the combined future value of their preserved savings was more than $3 million at normal retirement age.

Lawmakers Request Guidance for Auto-Portability of Retirement Savings

PLANSPONSOR's Rebecca Moore reports on the letter from US Senator Tim Scott, urging Labor Secretary Alexander Acosta to provide guidance on auto portability "as soon as possible."

PLANSPONSOR "State of Recordkeeping" Article Addresses Auto Portability

PLANSPONSOR's Judy Hartnett interviews SPARK's Tim Rouse, gaining his perspective on Auto Portability as a means to prevent small accounts from "leaking out of the system."

PLANSPONSOR: Auto Portability Can Boost Retirement Savings by $2 trillion

PLANSPONSOR covers the groundbreaking new EBRI Auto Portability projections, which indicate that full implementation of Auto Portability could generate an additional $2 trillion in retirement savings for Americans.

ERISA Advisory Council Backs Auto-Portability Initiatives

PLANSPONSOR's Rebecca Moore reports that the ERISA Advisory Council has released its final recommendations on facilitating lifetime plan participation related to plan-to-plan transfers and account consolidation. RCH's Tom Johnson, EVP of Policy and Development is quoted.

RCH in PLANSPONSOR: Guarding the Treasure

PLANSPONSOR's Rebecca Moore's article addresses defined contribution leakage, quoting RCH president and CEO Spencer Williams, as well as EBRI's Jack VanDerhei.

RCH in PLANSPONSOR: Addressing the Most Serious DC Plan Leakage Problem

PLANSPONSOR's Rebecca Moore sits down with RCH's CEO & President, Spencer Williams, to address the most serious DC plan leakage problem.

PLANSPONSOR Article Highlights Searching For An Appropriate IRA Provider, Quotes RCH CEO

Safe Harbor IRAs: Searching for an appropriate IRA provider By Judy Faust Hartnett of PLANSPONSOR

PLANSPONSOR Article Features RCH's PSCA Session on Auto Portability

PLANSPONSOR's Rebecca Moore covers the highlights of RCH CEO J. Spencer Williams' May 3rd presentation at PSCA's 69th Annual Conference on Auto Portability, the industry solution to cutting cash out leakage in the sub-$5,000 balance segment.

PLANSPONSOR Addresses President's Portability Initiatives; Quotes RCH CEO

A 1/27/16 article by PLANSPONSOR's Rebecca Moore addresses President Obama's portability initiatives, quoting RCH CEO J. Spencer Williams.

PLANSPONSOR, PLANADVISER Address New RCH Research

PLANSPONSOR's Jill Cornfield reviews the latest research on America's Mobile Workforce from Retirement Clearinghouse and Boston Research Technologies.

Portability and the Mobile Work Force Webcast Recap

In conjunction with Boston Research Technologies, Retirement Clearinghouse (RCH) announced the findings of a groundbreaking research study on America's mobile workforce, providing insights into participant behaviors regarding retirement savings portability. The study offers plan sponsors with strategies to stem cashouts and to improve retirement outcomes.

PLANSPONSOR Asks: Is Auto-Portability the Next Big Innovation for 401(k) Plans?

PLANSPONSOR's Sara Kelly interviews RCH CEO Spencer Williams, exploring Auto-Portability.

PLANSPONSOR Features RCH: Solving the Small Balance Issue for Millennials

Jill Cornfield of PLANSPONSOR chronicles the dilemma faced by the Millennial demographic, those aged 24 to 32.

Changes Coming to Your 401(k) in 2018 – What Do They Mean for You?

Quicken Loans' Dan Rafter discusses upcoming changes to 401(k) plans in 2018 with Edward Dressel, including auto portability.

BET Founder Bob Johnson Applauds Administration For 401(k) Auto Portability Program

RealClear Politics' Ian Schwartz covers the 12/12/18 White House event marking the establishment of the White House Opportunity and Revitalization Council, and focuses specifically on remarks made by the RLJ Companies founder and Retirement Clearinghouse majority owner Robert L. Johnson. In his remarks, Mr. Johnson thanks the administration for the Department of Labor's recent actions on Auto Portability, noting that the auto portability program could result in "close to $800 billion" in incremental retirement savings for minority Americans.

‘Auto-portability’ gets green light from DOL

In an 8/1/19 article, the editorial staff of the Retirement Income Journal covers the US Department of Labor's issuance of a final prohibited transaction exemption (PTE) for the RCH Auto Portability program. The article cites the final PTE as a key milestone in a five-year effort to gain regulatory approval for auto portability, and credits RCH executives Spencer Williams and Tom Johnson for their ongoing efforts since 2014.

Retirement Income Journal: ‘Auto-Portability’ Gets Closer to Reality

Retirement Income Journal Editor & Publisher Kerry Pechter addresses the recent actions by the U.S. Department of Labor, moving RCH's auto portability program closer to widespread adoption. Pechter provides readers with important context on the DOL's actions, including RCH's ongoing efforts and the public policy arguments in favor of auto portability. Pechter then shares insights from RCH's CEO Spencer Williams and Head of Policy & Development Tom Johnson.

Retirement Income Journal Features RCH's $4 Billion Consolidation Milestone

In their 11/1/18 article, the Editorial Staff of the Retirement Income Journal covers the 10/30/18 announcement that Retirement Clearinghouse (RCH) has surpassed $4 billion in account consolidations. The article breaks down the various components of account consolidations, including assisted rollovers and roll-ins, as well as noting RCH's recent success with automatic roll-ins, a fundamental component of RCH Auto Portability.

US sends ‘myRA’ accounts to Retirement Clearinghouse

On 8/9/18, the Editorial Staff of the Retirement Income Journal reported that the Treasury Department will transfer remaining, unmoved assets from the myRA program (discontinued in 2017) into Roth IRA accounts at Retirement Clearinghouse (RCH). The article references the notice posted on the myRA.gov website, which provides current myRA accountholders with instructions on how to withdraw or transfer their balances prior to the deadline of August 31, 2018, as well as providing information about going-forward arrangements for account balances that are moved to RCH. Also highlighted are RCH's ongoing efforts to obtain regulatory approval for auto portability, a clearing system that will "automatically transfer 401(k) assets....when a participant changes jobs."

Auto Portability Featured in "EBRI Super Model"

In his weekly Anecdotal Evidence column entitled "How Much Retooling Does the 401(k) Need?", Retirement Income Journal publisher Kerry Pechter covers two important weekly events -- the ERISA Advisory Council meeting and the EBRI webinar on their Retirement Security Projection Model (RSPM). For the EBRI event, Pechter notes that auto portability is a key public policy initiative in the "EBRI super model" and cites auto portability's benefits as reducing "retirement shortages for ages 35-39 by between 17% and 23%."

The beginning of the end of "leakage"?

Retirement Income Journal's Kerry Pechter reports on the progress towards solving cash-out leakage, with auto-portability recently going live with a large recordkeeper and a mega plan sponsor. Pechter interviews RCH founder, president & CEO Spencer Williams.

Influential Coalition Backs Auto-Portability: Retirement Income Journal

Two 4/6/17 articles by Retirement Income Journal address the growing & influential coalition backing auto-portability.

Retirement Income Journal Gives Honorable Mention to RCH, Bipartisan Policy Center

In the 6/23/16 edition of Retirement Income Journal, RIJ's editorial staff give RCH, the Bipartisan Policy Center and Auto Portability an "Honorable Mention" for "technology (that) enables 401(k) accounts to follow their owners from plan to plan automatically."

Retirement Income Journal Goes In-Depth Into Auto Portability with RCH Execs

Retirement Income Journal's Kerry Pechter goes in-depth into Auto Portability with RCH executives Spencer Williams and Tom Johnson.

RCH Featured in Retirement Income Journal Article on Auto Portability

A 9/25/14 Retirement Income Journal features RCH, citing its leadership in bringing Auto Portability to the 401(k) industry, a solution that help could solve the industry's "leakage" problem.

RCH CEO Addresses Benefits of Account Consolidation

Williams writes to the editor the Retirement Income Journal.

RCH, Auto Portability Featured by San Antonio Express-News

In a July 15th article, the San Antonio Express-News features Retirement Clearinghouse and Auto Portability, RCH's solution to curb cashout leakage among small-balance job changers.

DOL Eases Auto Transfer of Left-Behind 401(k) Dollars to New Plans

SHRM's Stephen Miller reports on the ramifications of the DOL's 7/31/19 finalized prohibited transaction exemption (PTE) for RCH's Auto Portability program. Quoting RCH President & CEO Spencer Williams, the new guidance, when paired with the prior November 2018 Advisory Opinion, provides 401(k) plan sponsors with "guardrails they need to safely adopt auto portability." Miller's piece also quotes Jan Jacobson, senior counsel for the American Benefits Council, who states that auto portability "could significantly lessen the problems plan sponsors face in trying to locate missing 401(k) plan participants."

SHRM: 401(k) Hardship Withdrawals, Account Transfers Might Get Easier

SHRM's Stephen Miller reports on recent actions by the Treasury Department (affecting hardship withdrawals) and the Labor Department, seeking comment on the Retirement Clearinghouse (RCH) auto portability program. The DOL's proposal, says Miller, "might keep retirement savings intact when an employee finds a new job" and added that "automatically transferring 401(k) accounts could leave departing participants with larger nest eggs since they would be less likely to cash out retirement funds."

SHRM on Auto Portability, Quoting RCH's Spencer Williams

SHRM's Stephen Miller, CEBS, reports that there's a "new approach" to reducing leakage - Auto Portability., and goes in-depth, quoting RCH's president & CEO Spencer Williams from his presentation at EBRI's 78th Policy Forum.

The Hill: Labor Department rightly trying to plug pension portability leaks

In his 11/19/18 opinion piece in The Hill, former U.S Treasury official and senior fellow in economic studies at The Brookings Institution Mark Iwry writes about his personal, 22-years long advocacy for 401(k) portability, dating back to the Clinton administration. Not much had changed in that time, says Iwry, until last week's guidance by the Department of Labor (DOL) on auto portability, led by the efforts of RCH executives Spencer Williams and Tom Johnson. With the way cleared by the DOL, Iwry notes that auto portability's success will now depend on the "willingness of recordkeepers...to cooperate so participants can enjoy expanded portability."

Fitting Synthetic Tenure into the Revolving Door of Talent

In an April 2019 article in The Leader's Edge Magazine, Zach Ewell examines the emerging concept of synthetic tenure, originated by Retirement Clearinghouse and an important by-product of auto portability. Ewell acknowledges the potential of synthetic tenure to reduce cashout leakage and to preserve retirement savings, and also suggests that employers who facilitate synthetic tenure via portability could realize additional benefits -- demonstrating that they care about employees and in so doing, potentially increasing "real tenure."

Got a New Job? Here’s What to Do With Your Old 401(k)

The Penny Hoarder's Sarah Kuta runs down the options facing 401(k) participants when they change jobs, including 1) leaving their savings in the plan, 2) rolling into a new employer's plan, 3) rolling over to an IRA and 4) cashing out. When it comes to cashing out, Kuta warns participants against this damaging behavior, citing a 2017 report by Retirement Clearinghouse, entitled "The Fundamentals of 401(k) Cashout Leakage" which takes a comprehensive view of America's 401(k) cashout leakage problem.

Future of Retirement: EBRI Expert Says it Includes Auto Portability

Jack VanDerhei, EBRI Research Director, envisions a critical role for auto portability in solving America's retirement crisis. In a recent symposium conducted by TheStreet in New York, VanDerhei identified four key retirement challenges -- plan coverage, long-term care costs, longevity and leakage. VanDerhei predicted that leakage will be addressed when auto portability "become[s] a part of the retirement landscape" and "little account balances, which are really highly-susceptible to being cashed out" are automatically consolidated into larger 401(k) balances.

How to Stop 401(k) Participants From Taking the Money and Running

ThinkAdvisor's Michael S. Fischer examines the latest Employee Benefit Research Institute (EBRI) research on auto portability, and finds a lot to like. First addressing the magnitude of the 401(k) cashout leakage problem, Fischer notes EBRI's finding that $92.4 billion leaked in 2015, and that each year, 4 in 10 plan participants who leave their jobs will cash out 15% of plan assets. Fischer goes on to highlight auto portability's effectiveness in plugging cashout leakage, accounting for $1.5 trillion in benefits as a standalone policy initiative. Fischer further cites auto portability's benefits to specific demographic segments, and concludes by noting its incremental, beneficial effects when combined with other legislative initiatives that expand access to workplace retirement plans.

ThinkAdvisor: Women's Retirement Income Shortfall Improved by Auto Portability

ThinkAdvisor's Michael S. Fischer takes a deep dive into EBRI research that examines the gender disparity in retirement savings deficits projected for single women and widows. Fischer also highlights the EBRI finding that, for employees with 21 to 30 years of future DC plan eligibility, auto portability reduced the average retirement savings shortfall by 21% for single women and by as much as 38% for widowers.

ThinkAdvisor: DOL Plan Would Help Workers Consolidate 401(k) Accounts

ThinkAdvisor's Melanie Waddell reports on the DOL's proposed ERISA exemption for Retirement Clearinghouse's auto portability program, which is intended to make retirement account balances easier to move from job to job.

Wagner Law Group: DOL Guidance on Auto Portability

The Wagner Law Group, specialists in ERISA and employee benefits law, summarize the recent DOL actions on auto portability, including their Advisory Opinion and proposed exemption, both for the Retirement Clearinghouse (RCH) auto portability program. The authors examine both actions, summarizing their findings, and identify the potential considerations and fiduciary implications for plan sponsors considering participation in an auto portability program.

Wall Street Journal: Moving Your 401(k) Could Get Easier

In her 6/10/19 column in The Wall Street Journal, Bailey McCann examines pending regulation from the U.S. Department of Labor on the RCH Auto Portability program, designed to reduce leakage and "help workers bring their retirement accounts with them as they change jobs." McCann quotes RCH founder, President & CEO Spencer Williams, and credits RCH for "develop[ing] the platform that would do the automatic transfers." Also expressing their support are Matthew Drinkwater, Director of Retirement Research at the LIMRA Secure Retirement Institute, and Alicia Munnell, Director of the Center for Retirement Research at Boston College.

Wall Street Journal: Labor Department Clears Path for Automatic 401(k) Transfers

In her 11/12/18 article in The Wall Street Journal, reporter Anne Tergesen addresses the pair of recent DOL actions that give Retirement Clearinghouse (RCH) a green light to move forward with its auto portability program. In support of the DOL's actions, Tergesen cites industry statistics on 401(k) leakage for job-changing participants, quoting industry figures from Morningstar, Boston College's Center for Retirement Research and former U.S. Treasury official Mark Iwry. Tergesen turns to RCH Chief Executive Spencer Williams, who addresses RCH's objectives in obtaining DOL guidance, as well as RCH's views on the benefits of the auto portability program.

401(k) or ATM? WSJ Article Examines Cashouts, Features RCH Data

The Wall Street Journal's Anne Tergesen takes a look at the latest research on auto-enrolled participants in 401(k)-style plans, which finds that these workers tend to treat these savings "like automated-teller machines" -- a phenomenon known in the retirement industry as "leakage." To support her point, Tergesen uses data supplied by Retirement Clearinghouse (RCH), indicating that 60% of 401(k) participants with balances below $10,000 will cash out their savings, paying income taxes and a 10% penalty. Tergesen also notes that "policy experts recommend automating the process of transferring money from an old employer's plan to a new employer's plan" -- a process known as auto portability.

RCH Featured in Wall Street Journal: Five Ways to Improve 401(k)s

As the 401(k) turns 40 years old, the Wall Street Journal’s Anne Tergesen examines five ways that the 401(k) could do a better job of creating retirement security, including reducing 401(k) leakage. To address the 401(k) leakage problem, Tergesen describes Retirement Clearinghouse’s ongoing efforts to implement auto portability, which automatically consolidates small balance accounts and moves retirement savings forward into a new employer’s 401(k) plan. Tergesen reports that RCH’s CEO Spencer Williams “expects to receive the green light” from the Department of Labor “as soon as this summer.”

DOL Update on Auto-Portability Arrives

Writing in WealthManagement.com, Ed McCarthy chronicles the rising anticipation this summer, as industry observers expected the DOL to issue a final transaction exemption for RCH Auto Portability program. That guidance, McCarthy observes, occurred on 7/31/19, but not before the RCH program had already proven its value. McCarthy, speaking with RCH President & CEO Spencer Williams, draws attention to the prior deployment of the auto-portability technology in "pilot mode" for a large plan sponsor, where it has already located and matched over 6,000 accounts belonging to active participants in the plan. According to Williams, the combination of the DOL's guidance and the successful deployment of the technology will now allow RCH to "push [auto-portability} out into the market on a wholesale basis."

WhiteHouse.Gov: EO on White House Opportunity and Revitalization Council Features Auto Portability

On 12/12/18, President Donald J. Trump signed an executive order establishing the White House Opportunity and Revitalization Council, intended to facilitate long-term equity investments in low-income communities designated as "qualified opportunity zones." Among the distinguished guests at the event was entrepreneur Robert L. Johnson, founder of the RLJ Companies and majority owner of Retirement Clearinghouse. Mr. Johnson took the opportunity to congratulate the administration and Sen. Tim Scott (R-SC) for their role in the Department of Labor's recent Advisory Opinion on auto portability, noting that auto portability will preserve $800 billion in minorities' retirement savings.

Video available on YouTube's White House channel here (queued to start at the President's introduction of Mr. Johnson)

A Mistake With Lingering Regret: Cashing Out Your 401(k)

In an article published on the Women's Institute For A Secure Retirement's (WISER) blog, RCH guest author Tom Hawkins describes the ill effects women face when they prematurely cash out their 401(k) balances. Not only do these cashouts jeopardize a safe & secure retirement, Hawkins cites research showing they'll regret the choice, and this regret will build over time. Women should only consider cashing out when faced with a true financial emergency, says Hawkins, and auto portability should help facilitate consolidation of retirement savings for women, as the feature is adopted.

WISER Publication Features Auto Portability

In an article carried in their WISERWoman Fall 2018 newsletter, the Women's Institute for a Secure Retirement (WISER) spreads the "good news" that the U.S. Department of Labor has issued an Advisory Opinion on auto portability, clearing the path for the automatic transfer of small 401(k) balances of $5,000 or less. The WISER article also notes that women are hard-hit by retirement savings cashout leakage, with 2.4 million women cashing out $28 billion per year from 401(k) plans.

WISER: Labor Department Clears Path For Automatic 401(k) Transfers

The Women's Institute For A Secure Retirement (WISER) has posted an article to their website (www.wiserwomen.org), indicating support for the U.S. Department of Labor's recent actions on auto portability. The highly-influential organization -- dedicated to education and advocacy that will improve the long-term financial quality of life for women -- notes that "this news is especially good for women who often hold smaller account balances" and could stand to benefit disproportionately from auto portability.

RCH in WISER: Understanding & Solving the Problem of Women's 401(k) Cashout Leakage

The Women's Institute for a Secure Retirement (WISER) features a guest article by RCH's Tom Hawkins, showcasing research presented at a 5/22/18 WISER forum, indicating that women with small 401(k) balances cash out more frequently than their male counterparts. As women’s 401(k) balances grow, they become more likely than men to preserve their retirement savings. These behaviors, along with the results of the Auto Portability Simulation, suggest that a program of retirement savings portability could incubate women’s small 401(k) balances, allowing them to more effectively grow their savings to higher balance levels, where more beneficial behaviors can prevail.

Employees Cash Out 401(k)s in Record Numbers

In her 2/14/18 article, Workforce Magazine's Patty Kujawa examines the ongoing dilemma of 401(k) cashout leakage, quoting RCH's Spencer Williams as well as Keith Overly, Executive Director of the state of Ohio's defined contribution plan. Both agree that cashouts are a big problem and emphasize different aspects of its prevention, with Williams focusing on measures that make it easier to move retirement savings forward when participants change jobs.