Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
The Scramble to Make the Saver’s Match Work
PlanAdviser's Alex Ortolani reports on the increasing attention being paid to the Saver's Match program as the 2027 target date for the measure's implementation draws closer. Industry groups such as the Pew Charitable Trusts and the Bipartisan Policy Center, acknowledge there could be issues for the program in addressing "the plumbing with recordkeepers." Ortolani turns to RCH CEO Spencer Williams, who indicates that the Saver's Match program could benefit from auto portability technology being deployed by the Portability Services Network, stating that the "utility can be modestly tweaked so the U.S. Treasury can....identify a taxpayer, select a dollar amount and get the money into their plan. At the end of the day, you have to move the money to make it work.”
Auto Portability Adoption Picks Up Steam
RCH EVP Neal Ringquist examines recent developments surrounding auto portability, which is now in the early stages of plan sponsor adoption. Ringquist writes that plan sponsor adoption “has begun to pick up steam” and shares results that “over 3,300 plans – representing almost 1.4 million active participants” have adopted auto portability via their PSN-affiliated recordkeepers. Ringquist credits PSN recordkeepers with leading the way, while citing a recent article about the Unum Group that provided an innovative plan sponsor’s perspective on the new feature. Looking ahead, Ringquist envisions auto portability becoming a “must-have” feature for sponsors and recordkeepers and expects “more adoption ahead – a lot more.”
Upcoming Trends in Plan Design: From the Perspective of a Retiring Plan Sponsor
PLANSPONSOR's Remy Samuels reflects on the pending retirement of Carl Gagnon, assistant vice president of global financial well-being and retirement programs at Unum Group, and "[k]nown for innovative plan design ideas and offering a wide swath of benefits to his employees." In recounting his legacy of innovation, Samuels notes that Unum Group has elected to adopt auto portability, as delivered by the Portability Services Network. "We think that’s going to be extremely attractive to our new hires,” Gagnon says. “We’re trying to make it easier for our employees to consolidate their assets into one plan and into one company so they can manage it all.”
What Optional SECURE 2.0 Provisions Are Plan Sponsors Most Likely to Adopt?
NAPA Net's Ted Godbout reports on the results of a new plan sponsor survey, conducted by Fidelity Investments "to gain a better understanding of what optional provisions of the SECURE 2.0 Act that plan sponsors are most likely to adopt." The survey found "high interest" in auto portability, a service which they expect to be a "standard offering." Godbout also writes that, "for larger plans, withdrawals for emergency expenses was replaced by auto-portability by corporate plan sponsors" and that "plan sponsors in finance and manufacturing both ranked auto-portability as a top option." The Fidelity report can be downloaded here.
Safe-Harbor IRAs Don’t Offer a Long-Term Saving Solution for Plan Participants
Writing in the RCH Consolidation Corner blog, RCH and PSN President & CEO Spencer Williams reflects on the 20-year history of safe harbor IRAs, which were intended to be "a temporary solution to the problem of too many small, stranded accounts in defined contribution plans." Williams provides readers with examples of the dysfunction that has occurred when safe harbor IRAs have failed to act as long-term repositories of savings, or worse, when participants cash out completely. With the advent of auto portability, Williams maintains that the new auto feature will "allow participants to maximize the time retirement savings are invested in their plan accounts—and minimize the time those balances are languishing in underperforming safe-harbor IRAs along the journey to retirement."
The Truth About Old-School Automatic Rollovers
Writing in 401K Specialist Magazine, RCH’s Tom Hawkins takes on “old-school” automatic rollover programs which produce massive amounts of cashout leakage and strand millions of participants’ balances in safe harbor IRAs. While old-school automatic rollovers have one foot in the past, Hawkins writes: “automatic rollovers that incorporate auto portability are the way of the future, with the industry-led Portability Services Network leading the way forward.” For plan sponsors, contends Hawkins, “auto portability delivers all the plan optimization features of old-school automatic rollover programs but goes one key step further” by automatically rolling-in eligible balances for new plan participants.
The Truth About Old-School Automatic Rollovers
Writing in the Consolidation Corner blog, RCH’s Tom Hawkins takes on “old-school” automatic rollover programs which produce massive amounts of cashout leakage and strand millions of participants’ balances in safe harbor IRAs. While old-school automatic rollovers have one foot in the past, Hawkins writes: “automatic rollovers that incorporate auto portability are the way of the future, with the industry-led Portability Services Network leading the way forward.” For plan sponsors, contends Hawkins, “auto portability delivers all the plan optimization features of old-school automatic rollover programs but goes one key step further” by automatically rolling-in eligible balances for new plan participants.
Alight Releases 2024 Global Impact Report Highlighting ESG Performance and Progress
Alight, Inc. (NYSE: ALIT), a leading cloud-based human capital and technology services provider, today published its 2024 Global Impact Report showcasing the company’s 2023 progress and future plans across its key environmental, social and governance (ESG) focus areas. In the Social Innovation portion of the report, Alight draws attention to their key role in "develop[ing] innovative solutions that address social determinants of health through expanded analytics and spearheaded the launch of the Portability Services Network (PSN) to improve retirement outcomes by promoting auto portability within the U.S. retirement system."
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