EBRI's Research Establishes Auto Portability as a Leading Public Policy Initiative

Auto Portability - Public Policy

Learn more about retirement savings public policy positions related to Auto Portability.


Nov
12
2018

Department of Labor Issues Auto Portability Advisory Opinion

The Department of Labor (DOL) has issued Advisory Opinion 2018-01A on RCH Auto Portability, which can be accessed on the DOL’s website at this link. The DOL’s Advisory Opinion states that defined contribution plan sponsors who accept automatic rollover contributions under auto portability will not be a fiduciary with respect to those contributions. This fiduciary “safe harbor” represents an important step to facilitate auto portability’s widespread adoption by plan sponsors, as well as their recordkeepers.

Nov
12
2018

PRESS RELEASE - Robert L. Johnson Welcomes Department of Labor’s Advisory Opinion on Auto Portability

Robert L. Johnson, Founder and Chairman of The RLJ Companies and majority owner of Retirement Clearinghouse, applauds the U.S. Department of Labor for providing guidance to retirement plan sponsors, clearing the path to widespread adoption of auto portability and enabling millions of Americans to effortlessly preserve their hard-earned retirement savings as they change jobs.

Oct
11
2018

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.

Sep
27
2018

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?

Sep
21
2018

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%.

Aug
09
2018

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."

May
23
2018

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.

Apr
20
2018

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.

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EBRI's Research Establishes Auto Portability as a Leading Public Policy Initiative