Auto Portability - Recent Developments
Find the most-recent auto portability media coverage and developments.
In his 12/17/18 article in 401kSpecialist, contributor Robert Lawton identifies healthcare savings as one of the biggest threats to a secure retirement, advocating for policies that support greater use of HSAs. In his analysis, Lawton also identifies auto portability and open MEPs as "good ideas to help address perceived deficiencies in existing 401(k) plans."
In his 12/17/18 opinion piece in The Daily Caller, Paris Dennard examines some of the Trump administration's economic policies toward black Americans, identifying the Labor Department's auto portability rule change as "allowing Americans, especially minorities, the ability to preserve their retirement savings when they change jobs."
RealClear Politics' Ian Schwartz covers the 12/12/18 White House event marking the establishment of the White House Opportunity and Revitalization Council, and focuses specifically on remarks made by the RLJ Companies founder and Retirement Clearinghouse majority owner Robert L. Johnson. In his remarks, Mr. Johnson thanks the administration for the Department of Labor's recent actions on Auto Portability, noting that the auto portability program could result in "close to $800 billion" in incremental retirement savings for minority Americans.
Fox News opinion journalist Laura Ingraham takes note of the RLJ Companies founder and RCH majority owner Robert L. Johnson's appearance at an event for the signing of an Executive Order, where Mr. Johnson commended the administration, the Department of Labor and Sen. Tim Scott (R-SC), for their support of auto portability. Ingraham quotes Mr. Johnson as stating that "(auto portability) will put back close to $800 billion back in the retirement pockets of minority Americans. So I just want to applaud you for that."
On 12/12/18, President Donald J. Trump signed an executive order establishing the White House Opportunity and Revitalization Council, intended to facilitate long-term equity investments in low-income communities designated as "qualified opportunity zones." Among the distinguished guests at the event was entrepreneur Robert L. Johnson, founder of the RLJ Companies and majority owner of Retirement Clearinghouse. Mr. Johnson took the opportunity to congratulate the administration and Sen. Tim Scott (R-SC) for their role in the Department of Labor's recent Advisory Opinion on auto portability, noting that auto portability will preserve $800 billion in minorities' retirement savings.
Video available on YouTube's White House channel here (queued to start at the President's introduction of Mr. Johnson)
Pensions & Investments' Washington reporter Brian Croce examines the RCH auto portability program, following the DOL's November guidance. Croce outlines key aspects of the RCH program, quoting noted Washington-based ERISA expert Michael P. Kreps, who states that a key outcome of the DOL's Advisory Opinion is to "provide plan sponsors with additional certainty that they're not taking on additional fiduciary responsibility or risk by selecting this product." Croce also quotes RCH CEO Spencer Williams, Boston College's Alicia Munnell and the American Benefits Council's Lynn Dudley.
In her 12/9/18 opinion piece in Barron's, noted retirement researcher Alicia H. Munnell takes stock of the recent DOL actions on the RCH Auto Portability program, which she characterizes as "good news" and a "win for the 401(k) system." Munnell credits RCH's Spencer Williams and Tom Johnson for the solution, which automatically consolidates small accounts as employees change jobs, addressing the 401(k) system's cashout leakage problem.
With the announcement of the Department of Labor’s recent actions, auto portability has taken center stage in the retirement industry. While auto portability has been well-known to a relatively small group of industry insiders, its recent, widespread coverage in the media has many asking the question “what is auto portability?” In his December 2018 article in BenefitsPRO, RCH Senior Vice President Tom Hawkins suggests that the best answer may depend on who's asking the question, but one thing's clear: auto portability is an idea whose time has come.