Retirement plan portability blog posts


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.
Dec
24
2019

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.

Sep
27
2019

The Auto Portability Imperative

In the fifth installment of his five-part series on 401(k) cashout leakage, RCH's Tom Hawkins addresses auto portability, a solution that not only makes sound business sense, but delivers a positive societal impact for the corporations adopting it. Citing the recent Statement of Purpose from members of the Business Roundtable, Hawkins believes that as these socially-conscious corporations examine auto portability, they’ll quickly become convinced that auto portability is both a sound business decision, as well as the right thing to do.

Sep
16
2019

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.

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.

Jul
16
2019

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.

Jun
28
2019

Spotlight on Cashout Leakage: The Fundamentals

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 first article, Hawkins addresses the fundamentals of cashout leakage -- defining it, clearing up common sources of confusion, and identifying why the problem continues to persist.

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