Auto Portability - Recent Developments

Find the most-recent auto portability media coverage and developments.


Nov
13
2018

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.

Nov
13
2018

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.

Nov
12
2018

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.

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.

Nov
12
2018

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.

Nov
12
2018

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.

Nov
09
2018

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."


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