Auto Portability blog posts


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
16
2020

The Institutionalization of Portability is Key to Reducing Cash-Out Leakage

In his latest article in Consolidation Corner, RCH President & CEO Spencer Williams identifies plan-to-plan portability as a vital feature to prevent cashout leakage. Similar to the progress that's been made over the past decade in reducing plan fees, Williams makes the case that the inevitable "institutionalization" of portability will dramatically reduce cashout leakage and maximize participants' retained savings. Williams advocates for the adoption of a dual portability model, comprised of auto portability for small balances and a consent-based, concierge service for participants with larger balances.

Feb
24
2020

New Research Confirms Clear Shift Towards Plan-to-Plan Portability

In his latest article in RCH's Consolidation Corner, RCH's Neal Ringquist observes that 401(k) plans have become more-and-more “institutionalized" -- yet the benefits of that increased institutionalization are being lost to large numbers of participants who cash out their 401(k) balances when they change jobs. Now, there’s clear evidence that plan sponsors understand the value of plan-to-plan portability in preserving 401(k) plans’ institutional benefits, and that a shift towards already-available portability solutions is underway.
Feb
20
2020

Video: Is Auto Portability the Next 401(k) ‘ESG’ Initiative?

The 401(k) cashout leakage crisis has significant, negative societal consequences -- impacting all Americans, but affecting minorities, women and lower-income segments the most. 401(k) plan sponsors, already familiar with Environmental, Social & Governance (ESG) initiatives, could finally be waking up and taking action to solve the cashout leakage problem, within the framework of corporate social responsibility. Plan-to-plan portability -- specifically auto portability -- is the most promising solution, and could become the next 401(k) ESG initiative.

Feb
10
2020

How Socially Responsible Corporations Will Solve the 401(k) Cashout Crisis

Writing in the Consolidation Corner blog, RCH's Tom Hawkins makes the case that socially conscious private-sector corporations will soon solve the nation's 401(k) cashout leakage crisis by fully-embracing plan-to-plan portability, including auto portability. Three key developments drive Hawkins' conclusions, including 1) a growing understanding of the problem and its societal impacts, 2) access to a viable solution and 3) clear acknowledgment of a responsibility to act for the benefit of society. Hawkins further notes that this view is being echoed in retirement research & public policy circles.

Feb
05
2020

How Sponsors Can Help Minorities Save More for Retirement

In his latest byline in the Consolidation Corner blog, 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 by implementing....auto portability" -- an action which he characterizes as being completely consistent with a recent public statement by the Business Roundtable, and endorsed by 181 CEOs of the nation's largest corporations.

Jan
29
2020

The New Age of DC Plan Portability

Writing in Consolidation Corner, 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 DC plans, will resolve the damaging disconnect between America's highly-mobile workforce and their immobile retirement savings.

Jan
02
2020

Auto Portability 2019: The Year in Review

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.

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