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Auto Portability - Recent Developments
Find the most-recent auto portability media coverage and developments.
P&I: Preston Rutledge's legacy to include auto portability
Covering breaking news, P&I's Washington, DC reporter Brian Croce informs readers about the pending departure of Preston Rutledge, assistant secretary of labor for the Employee Benefits Security Administration (EBSA). With no official announcement by the DOL, Croce turns to Michael Kreps, a principal at Groom Law Group, for comment. Kreps states in an email that "Preston is a dedicated public servant, and his legacy at the department includes important work on pooled retirement plans and auto portability" with Croce adding that auto portability "has a goal of significantly reducing plan leakage and missing participants."
401k Specialist Magazine Features Auto Portability
Issue 2, 2020 of the 401k Specialist Magazine features an article by RCH's Tom Hawkins. In his piece "The New Age of 401(k) Portability", Hawkins identifies clear, across-the-board indications that America's defined contribution (DC) system is entering a "new age" of plan-to-plan portability. Portability, Hawkins contends, is the "missing ingredient" that, when added to 401(k) plans, will resolve the damaging disconnect between America's highly-mobile workforce and their immobile retirement savings.
How Does Auto Portability Work? Watch the Video
Looking for a quick primer on how auto portability works? Watch the video embedded in this RCH Consolidation Corner article, which walks you through the four-step process. The video also introduces you to the key elements of participant communication that occur along the way. Enjoy!
How sponsors can help minorities save for retirement
In his latest byline in Employee Benefit News, RCH President & CEO Spencer Williams addresses the cashout leakage crisis, which disproportionately affects minorities, including African-Americans and Hispanics. Auto portability, says Williams, can make all the difference in solving the crisis, but requires that "sponsors themselves, as well as their recordkeepers, take the next step" and adopt the new plan feature. The adoption of auto portability, writes Williams, is completely consistent with a recent public statement released by the Business Roundtable, and endorsed by 181 CEOs of the nation's largest corporations.
SECURE Act Impact: 3% Reduction in Retirement Deficit?
401kSpecialist Magazine's Managing Editor Brian Anderson reports on EBRI's 2/21/20 Issue Brief, which examines key provisions of the SECURE Act. In his article, Anderson notes that the overall reduction in the nation's Retirement Savings Shortfall (RSS) directly attributed to the legislation is 3%. However, when EBRI factors in auto portability, Anderson writes that "the overall reduction in retirement savings shortfalls is 10.0%" -- a significant increase over baseline.
SECURE Act Will Reduce Retirement Deficits By $115 Billion, EBRI Says
Financial Advisor Magazine's Tracey Longo covers EBRI's 2/20/20 Issue Brief that projects the benefits of the SECURE Act legislation, noting that the SECURE Act, by itself, could cut the nation's Retirement Savings Shortfall (RSS) by 3%, or $115 billion. While this is good news, even better news is that the SECURE Act -- when paired with auto portability -- would generate a whopping 10%, or $383 billion reduction in the RSS, of which $268 billion is directly attributable to auto portability.
NAPA Net: SECURE Act Benefits Surge, When Paired With Auto Portability
NAPA Net reporter Ted Godbout covers the release of EBRI's Issue Brief #501, released 2/20/20, which projects the benefits of the newly-enacted SECURE Act legislation. EBRI's analysis finds that key provisions of the SECURE Act are projected to deliver a respectable 3%, or $115 billion reduction in the Retirement Savings Shortfall (RSS), a key metric of retirement savings adequacy. However, when the SECURE Act is paired with auto portability, Godbout notes that the RSS reduction surges to 10%, or $383 billion.