Auto Portability - Recent Developments
Find the most-recent auto portability media coverage and developments.
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."
According to Forbes retirement contributor Elena Botella, Americans not only save too little for retirement, they don't keep enough of what they save. Botella examines the phenomenon known as "leakage" and reveals that it's a big problem -- where 20 cents of every dollar saved for retirement is withdrawn too early. Botella cites Retirement Clearinghouse's DOL-approved auto portability program as a viable solution to leakage, delivered through a network of retirement plan recordkeepers.
Writing in 401kSpecialist, RCH's Tom 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.
Writing in Lexology.com, the law firm Eversheds Sutherland LLP addresses notable 2019 ERISA guidance promulgated by the Department of Labor, including Advisory Opinions, Field Assistance Bulletins and Prohibited Transaction Exemptions (PTEs). For the 7 PTEs finalized in 2019, they single out RCH and auto portability, stating: "One exemption broke new ground. PTE 2019-02 granted relief for RCH’s auto-portability program, with respect to certain fees charged in connection with the transfer of accounts to the plan of a participant’s new employer."
Picking up on a theme from RCH President & CEO Spencer Williams, 401kTV Managing Editor Steff Chalk examines the quantifiable financial wellness benefits that could be realized by plan sponsors and their participants, via the adoption of auto portability. Linking to an article previously authored by Williams in Employee Benefit News, Chalk runs down the litany of persuasive proof points offered by Williams, concluding: "we couldn't have said it better."
Writing in Employee Benefit News, RCH President & CEO Spencer Williams examines the current state of financial wellness programs, and the challenges plan sponsors face in quantifying their benefits. Facilitating retirement savings portability -- by adopting auto portability for small balances or implementing an assisted roll-in program for larger balances -- can easily overcome this challenge by offering sponsors financial wellness initiatives that not only deliver excellent results, but can be readily measured.
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.