Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
The Accelerating Adoption of Auto Portability: A Market Adoption Theory Perspective
RCH’s Tom Hawkins, writing in 401k Specialist, examines the accelerating adoption of auto portability from the perspective of the tried-and-true theory of market adoption. Hawkins takes the position that auto portability is “on the cusp of becoming a mainstream feature in retirement plans” as it transits the innovator/early adopter phase and moves into the early majority phase, as described in the theory’s framework.
The Saver's Match and Auto Portability: A Powerful Combination
Two groundbreaking retirement savings initiatives could be poised to converge, potentially revolutionizing the way Americans save for retirement. The Saver's Match program, set to debut with the 2027 tax year, and auto portability, powered by the Portability Services Network (PSN), present a unique opportunity to address long-standing challenges in the retirement system. By leveraging the strengths of both programs, we can create a more robust and efficient retirement savings ecosystem that benefits millions of American workers.
Employers tweak key 401(k) provision to reduce uncashed checks
Pensions & Investments' Margarida Correia addresses the ongoing dilemma of uncashed distribution checks, finding that many plan sponsors have begun to accept that cashing out balances under $1,000 is a bad idea. Correia also notes that employers can address the problem "by joining an automatic-portability service known as the Portability Services Network. If an employee moves to an organization that is part of the network, his or her retirement account balance will automatically be transferred to his or her new employer’s retirement plan, even if the amount is less than $1,000." Correia also notes Alight research that indicates that "more than half of employers (52%) reported they were either very or moderately interested in the...service."
The Compelling Case for Women and Auto Portability
Writing in 401k Specialist, RCH's Tom Hawkins describes research indicating that a "compelling case" can be made for the importance of auto portability to women, who face unique retirement savings challenges that auto portability can help address. Hawkins cites the results of the Auto Portability Simulation (APS), which indicate that, on an annual basis, auto portability would preserve the savings of 2 million women participants. Over a generation, 111 million women would preserve their retirement savings, worth about $753 billion in today’s dollars. Offering these figures as evidence, Hawkins argues that "women can benefit disproportionately from the widespread adoption of auto portability."
How Auto Portability Is Helping Americans Save More For Retirement
In Financial Advisor Magazine, Wealth Manager Russ Alan Prince shares his one-on-one interview with Retirement Clearinghouse (RCH) and Portability Services Network (PSN) President & CEO Spencer Williams, addressing how auto portability is helping millions of Americans save more for retirement. In the interview, the pair discuss how auto portability works, the current status of plan sponsor adoption by PSN-affiliated recordkeepers, and the long-term benefits of auto portability that will accrue to the nation's retirement system, as well as to under-served and under-saved demographic segments.
Portability Services Network Expands Impact
Alera Group, the country's 15th largest broker, took to their Insights column to chronicle the recent success of the Portability Services Network (PSN) in onboarding 15,000 retirement plans representing over 5 million participants for the purpose of adopting auto portability. The Alera article quotes RCH & PSN Chairman Robert L. Johnson. who states ""auto-portability was conceived as an innovation to benefit minority and women savers, and it is immensely gratifying to witness its coming to fruition." The piece also cites RCH research, which estimates that auto portability "could save the retirement system $1.6 trillion over the course of 40 years."
Let’s Help People Save Seamlessly Over a Career
Fiona Greig, Ph.D., and global head of investor research and policy in Vanguard’s Investment Strategy Group, authors a guest piece in PLANSPONSOR, where she advocates for three ideas "that will help workers save and invest seamlessly, even as they switch jobs." Greig calls for preserving and consolidating assets and strongly encourages employers to promote auto portability, as delivered by the Portability Services Network. Greig takes the position that the automatic transfer of small balances would offer a "far better alternative to sending a check to the worker’s home, and it could promote consolidation of retirement accounts."
More SECURE 2.0 Retirement Enhancements Kick in This Year
Writing in Kiplinger's Personal Finance, Mike Dullaghan, Director of Sales Execution for Franklin Templeton, runs down the new SECURE 2.0 provisions that will become fully-enabled in 2025. Dullaghan informs readers that the auto portability provision "makes it easier to transfer your retirement savings from one employer’s plan to another when you change jobs. It helps ensure that your retirement savings stay with you, no matter where you work."
1916 Ayrsley Town Boulevard