Mar
03
2022

Towards a Sustainable and “Greener” 401(k) System

RCH’s Tom Hawkins, writing in RCH’s Consolidation Corner blog, reacts to the DOL’s 2/14/22 Request for Information (RFI) seeking comment on ways to “protect life savings and pensions from threats of climate-related financial risk.” In his piece, Hawkins contends that our retirement system itself has significant sustainability problems that are more financially material to future retirees than climate change. Hawkins urges action to address the 401(k) system’s inefficiency and waste, which could “produce more of the ‘green’ that will matter to future retirees.” Hawkins notes the findings of a recent Brookings Institution report on the problem of small retirement accounts, which recommends improvements in “combining accounts” and includes support for auto portability.

Jan
17
2022

Robert L. Johnson, Majority Owner of Retirement Clearinghouse, Secures Endorsement of Two Civil Rights Organizations for Auto Portability

Robert L. Johnson, Founder and Chairman of The RLJ Companies and majority owner of Retirement Clearinghouse (RCH), has secured endorsements for auto portability from two premier civil rights organizations – the National Urban League, and the National Association for the Advancement of Colored People (NAACP) – both with over a century of experience advocating for solutions that address the inequities and economic challenges experienced by Black Americans and by other communities of color. Renée Wilder Guerin, RCH Executive Vice President, Public Policy, summarizes these major developments in RCH's Consolidation Corner.

Sep
01
2021

Refundable Saver’s Tax Credits Would Significantly Reduce Retirement Savings Shortfall—Especially for Minorities

Writing in RCH's Consolidation Corner, RCH President & CEO Spencer Williams examines pending retirement savings legislation, and focuses upon the benefits of a refundable saver's credit, which would be directly deposited into taxpayers' 401(k) and IRA accounts. Taking his analysis a step further, Williams considers the infrastructure required to transfer these funds to savers, and identifies considerable synergies with the existing technology that supports auto portability.

Feb
22
2021

Auto Portability Is, And Always Will Be, A Bipartisan Solution

RCH President & CEO Spencer Williams, writing in Consolidation Corner, addresses the consistent bipartisan support that auto portability has enjoyed in DC. This support, writes Williams, transcends party affiliation, extending across multiple Presidential administrations as well as both legislative branches of the U.S. Congress, and falls squarely in-line with policy initiatives that advance the interests of minority and low-income workers. Williams provides readers with an impressive, years-long list of actions & endorsements that reflect auto portability's broad-based support, which culminated last year with the nationwide rollout of the program.

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.

Jul
26
2019

The Demographics of 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 second article in the series, Hawkins examines the demographics of 401(k) cashout leakage, identifying those segments of the population most impacted by the problem, as well as those who stand to benefit the most from a solution.

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