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Mobile workforce (or job-changing participants) blog posts

Mar
27
2019

Tax Day is Coming—Encourage Millennial Participants to Incubate Saver’s Credits

With Tax Day (April 15) just around the corner, RCH's Spencer Williams advises plans and their participants to take advantage of the Saver's Credit, a tax credit that rewards eligible IRA and plan contributions. Nurturing these contributions not only promotes savings, says Williams, but also makes participants less-likely to cash out their 401(k) balances as they change jobs. Turning to Millennials, Williams addresses the Financial Independence, Retire Early (FIRE) movement, cites the latest research from EBRI indicating that Millennials' retirement prospects are significantly improved by auto portability, and provides several illustrations to make the point.

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Nov
26
2018

Auto Portability is Like Bacon—It Makes Everything Better

In his monthly column in Consolidation Corner, RCH President & CEO Spencer Williams explains to readers why auto portability is like bacon -- by making everything better for all parties in America’s retirement system.

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Oct
22
2018

Is Your Missing-Participant Program a Ford Model T or 2018 BMW?

In today’s day and age, what is considered a state-of-the-art program today could easily become obsolete tomorrow, rendering a plan’s missing participant program vulnerable to fiduciary liability.

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Sep
27
2018

Pairing 401(k) Savings Preservation and Expanded Access for America’s Minorities

In this article, RCH's Spencer Williams and Tom Hawkins address an important retirement public policy question: How would a pairing of auto portability with open multiple employer plans (or “open MEPs”) impact the retirement savings of America’s minorities, and particularly, African-Americans?

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Aug
16
2018

A Tale of Two 401(k) Balance Segments

RCH's Tom Hawkins reveals new research that predicts 401(k) participant outcomes following separation for two balance segments – those above & below $15,000. Using logic developed in the Auto Portability Simulation to track & tally participant outcomes 8 years following separation, the results reveal a startling contrast between the two segments – with participants in the over-$15,000 segment experiencing far-superior outcomes to those in the under-$15,000 segment. To address the disparities, Hawkins advocates for a new “automatic” in the form of auto portability.

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Jul
06
2018

Auto Portability’s Role in Helping Women Save More for Retirement

Auto portability has become a leading retirement savings public policy initiative due to its proven ability to preserve small-balance defined contribution accounts. Now, research is indicating that, when it comes to women, auto portability could deliver even greater benefits by making it easier for women participants to preserve their 401(k) savings and help to put them on par with men to achieve financial wellness.

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Jun
15
2018

The Missing Piece in 401(k) Retirement Income: Consolidation

Over the span of their working lives, Baby Boomers have witnessed the birth of 401(k) plans as optional, "supplemental" retirement plans, seen the rapid spread of 401(k) plans throughout the U.S. retirement system, and tracked the evolution of the 401(k) plan into the primary and often, only -- retirement savings plan to be offered by their employers.

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May
23
2018

Understanding and Solving the Problem of Women’s 401(k) Cashout Leakage

At a May 22nd, 2018 Women's Institute for a Secure Retirement (WISER) roundtable, Retirement Clearinghouse (RCH) EVP Tom Johnson debuts new women's 401(k) cashout leakage statistics. This important new data highlights the challenges that women face in preserving their small-balance 401(k) retirement savings when changing jobs, and also points to the promise of auto portability to preserve these savings in order to achieve higher balance levels, where more virtuous behaviors can prevail.

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