Auto Portability - Public Policy
Learn more about retirement savings public policy positions related to Auto Portability.
P&I's Brian Croce examines EBRI's new Issue Brief, which models the impact of key provisions of the SECURE Act. Croce notes that EBRI's projection of the legislation's baseline benefits produces an overall reduction in the Retirement Savings Shortfall (RSS) of 3%, or $115 billion, while the addition of auto portability dramatically increases those benefits to yield a 10%, or $383 billion reduction in the RSS measure.
A new Issue Brief released by the Employee Benefit Research Institute (EBRI) examines the impact of the SECURE Act's most important provisions on Americans' retirement security. The EBRI brief projects that the SECURE Act will reduce the nation's $3.81 trillion Retirement Savings Shortfall (RSS) by 3%, or $115 billion. However, when combined with auto portability, the RSS is reduced by 10%, or $383 billion -- a massive, incremental benefit.
Writing in Medium, RCH's Tom Hawkins makes the case that socially conscious private-sector corporations will soon solve the nation's 401(k) cashout leakage crisis by fully-embracing plan-to-plan portability, including auto portability. Three key developments drive Hawkins' conclusions, including 1) a growing understanding of the problem and its societal impacts, 2) access to a viable solution and 3) clear acknowledgment of a responsibility to act for the benefit of society. Hawkins further notes that this view is being echoed in retirement research & public policy circles.
Georgetown University's prestigious Center for Retirement Initiatives (CRI) makes clear their advocacy for solving the nation's cashout leakage problem through the application of auto portability. A team of research analysts (Andrew Green, Benjamin Roth) along with CRI executive director Angela Antonelli, details the negative societal impact of cashout leakage and makes a strong case for the adoption of auto portability, a solution that research indicates will deliver significant benefits to minorities. The team cites the growing support for auto portability, including bipartisan political support, and concludes that "plan sponsors should take action to further facilitate the adoption of auto-portability, and in doing so, improve the retirement security of millions of Americans."
In her latest column for Forbes, Angela Antonelli, executive director of Georgetown University's Center for Retirement Initiatives (CRI), makes clear her advocacy for solving the nation's cashout leakage problem through the application of auto portability. Antonelli, a noted retirement researcher and public policy expert, details the negative societal impact of cashout leakage, before making a strong case for the adoption of auto portability, a solution that she believes will deliver particular benefits to minorities. Antonelli concludes with a clear call to action, stating that "we have a solution and it is time to get it done."
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.
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.
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.