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

On April 16th, as part of their Strategic Issues Webinar Series, the LIMRA Secure Retirement Institute delivered the webinar Regulatory and Legislative Trends Impacting the U.S. Retirement System, featuring presenter Michael Kreps, Principal, Groom Law Group, and a highly-influential voice in DC on retirement public policy. Kreps provided an insider's update on auto portability, which he characterized as having the potential to deliver “an enormous boost to the industry and to participants in general.”

Department of Labor Issues Auto Portability Advisory Opinion

The Department of Labor (DOL) has issued Advisory Opinion 2018-01A on RCH Auto Portability, which can be accessed on the DOL’s website at this link. The DOL’s Advisory Opinion states that defined contribution plan sponsors who accept automatic rollover contributions under auto portability will not be a fiduciary with respect to those contributions. This fiduciary “safe harbor” represents an important step to facilitate auto portability’s widespread adoption by plan sponsors, as well as their recordkeepers.


Regulators and Policy Advocates Focus on Retirement Savings Portability

The most important portability development on the horizon is the DOL’s auto portability Advisory Opinion, which will provide guidance for plan sponsors on the automatic roll-in of small account balances previously forced-out into safe harbor IRAs.


Two Retirement Public Policy Initiatives Moving Forward in 2018

Two retirement savings public policy initiatives – auto portability and the problem of missing participants – are very likely to see significant progress in 2018. Both initiatives enjoy strong bipartisan support, promise to streamline and strengthen America’s defined contribution system, and will preserve the retirement savings of millions of Americans by ensuring that their savings move forward when they change jobs.


In Search Of: Guidance for Locating Missing Participants

This article focuses on the American Benefits Council’s specific recommendations to the DOL as set forth in their October 2nd, 2017 letter. The Council’s recommendations, if adopted, could establish a more complete, consistent and reasonable framework for plans to address the missing participant problem, going forward.


Washington Recognizes Need for Retirement Plan Portability Solutions – Part 2

Senator Scott Letter, auto portability received an endorsement during a hearing on Capitol Hill this week.


Plug the Leaks Before Expanding Access to Defined Contribution Plans

In recent months, our attention has been drawn to some deserving public policy initiatives that would dramatically expand access to workplace retirement savings accounts and address the “access gap” encountered by millions of American workers who are presently offered no such option.