Auto Portability - Recent Developments

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


Jun
10
2020

Without auto portability, terminated employees will miss out on retirement funds

Writing in Employee Benefits News, RCH President & CEO Spencer Williams examines the disruptive effects of the COVID-19 pandemic on America's retirement savers, and makes a persuasive case for the systemic, institutional adoption of auto portability as a means to help rebuild and to preserve retirement savings over the long-term. In the near-term, Williams observes that reduced participant mobility make this an opportune time for sponsors to update participant addresses.

May
26
2020

The Pluses of Portability

In their latest "Inside Angle" column featured in the April-May 2020 PLANSPONSOR Magazine edition, Groom Law Group's Steve Saxon and George Sepsakos advise fiduciaries on the "pluses of portability" -- specifically addressing the improvements auto portability confers upon the 15 year-old automatic rollover (ARO) feature. Auto portability, writes the authors, "is consistent with the DOL’s broader view that plan fiduciaries have an obligation to locate missing participants and to pay benefits." To this end, they urge sponsors & fiduciaries -- when reviewing their ARO programs -- to consider incorporating auto portability in order to best meet these core fiduciary requirements.

Apr
29
2020

Extend the Spirit of the CARES Act to Automatic Rollovers

In light of the COVID-19 crisis, RCH's Tom Hawkins examines another burden borne by millions of participants, when they’re furloughed or laid off and become subject to ‘traditional’ automatic rollover IRAs – where they’ll likely face high levels of cashouts, predatory fees and barriers to exit. Now, more than ever, it’s important for sponsors to act and to redress this burden. For sponsors utilizing traditional automatic rollover IRAs, Hawkins urges them to demonstrate their caring through three actions that will help address the problem and will deliver significant societal benefit.

Apr
23
2020

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."

Apr
20
2020

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.

Mar
20
2020

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!

Mar
02
2020

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.

Also featured in Employee Benefit Adviser

Feb
28
2020

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.

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