Consolidation Corner

A Critical Time to Protect the Vulnerable

Writing in Consolidation Corner, RCH's Tom Hawkins addresses the need to protect newly-terminated, vulnerable participants during the COVID-19 crisis. Hawkins points out that these participants are particularly vulnerable to financial emergencies, or in many cases, simply to poor decision-making. Hawkins urges sponsors to take additional steps to listen, to educate and to protect these participants -- not only during the crisis, but beyond.

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.

The Playbook for Conducting Diligent Missing Participant Searches

Writing for RCH’s Consolidation Corner blog, EVP Neal Ringquist coaches plan sponsors on a winning strategy to address the problem of missing participants. Ringquist offers sponsors a four-part playbook for success, including: 1) understanding the problem, 2) taking proactive measures, 3) adopting best search practices and 4) engaging a search service provider. With participants’ benefits on the line, sponsors who follow the Ringquist playbook for conducting diligent missing participant searches will be playing to win.

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.

What’s Missing from the SECURE Act? A Provision to Plug Cash-Out Leakage

In his latest article in Consolidation Corner, RCH President & CEO Spencer Williams identifies a key, missing element in pending retirement legislation: provisions to plug cash-out leakage. Citing both the SECURE Act of 2019 and the Automatic Retirement Plan Act of 2017 (ARPA), Williams applauds their commendable goals to expand coverage, but takes them to task for failing to incorporate provisions that plug leakage. To make his case, Williams cites two recent EBRI studies, both finding that auto portability – when combined with legislative proposals that expand access – vastly improves their public policy benefits by stemming leakage and by dramatically reducing the nation’s retirement savings shortfall.

LIMRA Webinar Features Michael Kreps’ Update on Auto Portability

America's 401(k) System is Unsustainable - Let's Fix It

On Earth Day 2019, as we focus on creating a sustainable and eco-friendly environment, it's worth considering how the application of similar principles would benefit our retirement system. America’s 401(k) system is unsustainable – urgently requiring an upgrade to effectively deliver on its intended goal – helping millions of Americans enjoy a timely and comfortable retirement. The good news is that we're beginning to see important signs of action that could ultimately address the problem.

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.