Consolidation Corner

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.

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.

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.

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.

How Auto Portability Serves Participants’ Best Interests: Pt 4 Auto Portability Enhances Participants’ Financial Wellness

In the 4th 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 enhance 401(k) participants' financial wellness. To make his case, Hawkins identifies three ways auto portability promotes financial well-being, including: 1) preventing unnecessary 401(k) cashouts, 2) helping 401(k) participants clear the "$10,000 hurdle" and 3) simplifying retirement planning.

How Auto Portability Serves Participants’ Best Interests - Part 2: An Enhanced Standard of Participant Care

In the second installment of his five-part series "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how auto portability, by extending and enhancing elements of automatic rollovers, establishes a new standard of participant care. Auto portability, writes Hawkins, protects participants by: 1) minimizing time spent in a safe harbor IRA, 2) eliminating the need to cash out balances less than $1,000, 3) enhancing participant communication, 4) formally integrating a robust address location search and 5) establishing a transparent, simple & straightforward fee structure.

How Auto Portability Serves Participants’ Best Interests - Part 1: Dramatically Improved Participant Outcomes

What is Auto Portability? It Depends on Who’s Asking.

With the announcement of the Department of Labor’s recent actions, auto portability has taken center stage in the retirement industry. While auto portability has been well-known to a relatively small group of industry insiders, its recent, widespread coverage in the media has many asking the question “what is auto portability?” In this article, RCH Senior Vice President Tom Hawkins suggests that the best answer may depend on who's asking the question, but one thing's clear: auto portability is an idea whose time has come.