401k consolidation blog posts


Dec
24
2019

A Financial Wellness Program You Can Actually Measure

In his latest Consolidation Corner article, 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, writes Williams -- whether through auto portability for small balances or an assisted roll-in program for larger balances -- can overcome this challenge by offering sponsors a financial wellness initiative that preserves participants' retirement savings and is easily quantifiable.

Sep
27
2019

The Auto Portability Imperative

In the fifth installment of his five-part series on 401(k) cashout leakage, RCH's Tom Hawkins addresses auto portability, a solution that not only makes sound business sense, but delivers a positive societal impact for the corporations adopting it. Citing the recent Statement of Purpose from members of the Business Roundtable, Hawkins believes that as these socially-conscious corporations examine auto portability, they’ll quickly become convinced that auto portability is both a sound business decision, as well as the right thing to do.

Sep
16
2019

The Most Promising Policies to Reduce 401(k) Cashout Leakage

In his five-part series in Consolidation Corner, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his fourth article in the series, Hawkins addresses policies with the most promise to reduce the 401(k) cashout leakage problem.

May
23
2019

How Auto Portability Serves Participants’ Best Interests: Pt 4 Auto Portability Enhances Participants’ Financial Wellness

In the 4th installment of his five-part series on "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how a program of auto portability can enhance 401(k) participants' financial wellness. To make his case, Hawkins identifies three ways auto portability promotes financial well-being, including: 1) preventing unnecessary 401(k) cashouts, 2) helping 401(k) participants clear the "$10,000 hurdle" and 3) simplifying retirement planning.

May
07
2019

A Plan Metric Every Sponsor Should Track: Participant-Retained Retirement Savings

In his latest article in Consolidation Corner, RCH President & CEO Spencer Williams advises retirement plan sponsors to consider tracking the average percentage of retirement savings that participants retain during their tenure. Auto portability, says Williams, can enable participants to preserve their small-balance savings through job changes. Going further, Williams encourages plan sponsors and consultants to apply the all-important “participant-retained savings” lens when evaluating automatic rollover programs, including metrics such as cash-out rates, median safe harbor IRA account duration and provider support for consolidation.

Apr
23
2019

EBRI Webinar Examines Impact of Tenure on Retirement Savings

RCH's Tom Hawkins summarizes the April 10th EBRI webinar Trends in Employee Tenure, which offered EBRI’s latest research examining broad employee tenure trends, and the impact that shorter tenure has on retirement savings. The webinar’s presenters included Craig Copeland, EBRI and Spencer Williams, Retirement Clearinghouse (RCH), and was moderated by Stacy Schaus, Schaus Group LLC. In his portion of the presentation, Williams introduced the concept of “synthetic tenure” – whereby enhancing system-wide portability -- particularly for small accounts -- enables participants to preserve their savings through job changes, mirroring the success of EBRI’s longer-tenured, “consistent participation” population.

Apr
15
2019

How Auto Portability Serves Participants’ Best Interests - Part 3: Auto Portability Could Lower Plan Expenses

In the 3rd installment of his five-part series on "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how a program of auto portability can serve to lower plan expenses by 1) reducing small-balance accounts and 2) increasing plan assets. To illustrate these benefits, Hawkins uses the Auto Portability Simulation (APS) to model a hypothetical, 10,000 participant plan over 40 years, with and without auto portability.

Mar
11
2019

How Auto Portability Serves Participants’ Best Interests - Part 2: An Enhanced Standard of Participant Care

In the second installment of his five-part series "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how auto portability, by extending and enhancing elements of automatic rollovers, establishes a new standard of participant care. Auto portability, writes Hawkins, protects participants by: 1) minimizing time spent in a safe harbor IRA, 2) eliminating the need to cash out balances less than $1,000, 3) enhancing participant communication, 4) formally integrating a robust address location search and 5) establishing a transparent, simple & straightforward fee structure.

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