Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
Investment News: DOL proposes rule to reduce leakage in 401(k) plans
InvestmentNews
reporter Greg Iacurci reports on the Department of Labor’s 11/7/18 proposed
exemption for RCH “that’s meant to stanch the flow of money out of 401(k)
plans, an issue that has long troubled retirement policymakers.” Iacurci notes
policymaker concerns about 401(k) leakage, and cites research from the GAO, the
Center for Retirement Research at Boston College (CRR) as well as supportive
comments from Marcia Wagner, principal at The Wagner Law Group. RCH, notes
Iarcurci, needs the exemption in order to receive a transfer fee, absent an
individual’s consent.
401k Specialist: DOL Wants Your Opinion on Auto Portability
The
401kSpecialist’s Jessa Claeys notes the DOL’s 11/7/18 Employee Benefit Security
Administration (EBSA) request for public comment on RCH’s proposed exemption,
and advises her readers to comment, if they have strong opinions. The
DOL’s exemption, says Claeys, would excuse RCH from ERISA and IRC rules that
don’t allow sponsors or fiduciaries to use plan or employee assets for moving a
former employee’s retirement savings forward, into their current-employer’s
plan.
NAPA Net: DOL Seeks Input on Auto Portability
NAPA Net’s Ted
Godbout informs his readership about the Labor Department’s 11/7/18 request for
public comment on an auto-portability program, and notes the DOL’s Employee
Benefit Security Administration (EBSA) announcement of a notice of proposed
exemption for RCH from restrictions that “would allow the firm to move forward
with its auto-portability program.” Godbout goes on to cite the broad-based
support for auto-portability, including bipartisan political support for a DOL
Advisory Opinion on auto-portability, and research by EBRI. Finally, Godbout quotes
RCH President/CEO Spencer Williams on key job-changer statistics.
$4B and 155,000 Accounts Later: 401kWire Covers RCH Milestone
On Monday, 11/5/18, The 401kWire's article "$4B and 155,000 Accounts Later" covers RCH's announcement (see RCH Press Release from 10/30/18) on crossing the $4 billion milestone for retirement assets consolidated. RCH CEO Spencer Williams and EVP Neal Ringquist are both quoted in the piece, which also addresses the critical role of auto portability in consolidating small-balance accounts, noting its initial implementation in July 2017.
Retirement Income Journal Features RCH's $4 Billion Consolidation Milestone
In their 11/1/18 article, the Editorial Staff of the Retirement Income Journal covers the 10/30/18 announcement that Retirement Clearinghouse (RCH) has surpassed $4 billion in account consolidations. The article breaks down the various components of account consolidations, including assisted rollovers and roll-ins, as well as noting RCH's recent success with automatic roll-ins, a fundamental component of RCH Auto Portability.
Is Your Missing-Participant Program a Ford Model T or 2018 BMW?
In today’s day and age, what is considered a state-of-the-art program today could easily become obsolete tomorrow, rendering a plan’s missing participant program vulnerable to fiduciary liability.
PLANSPONSOR Highlights 401(k) Consolidation Issue, Need for Auto Portability
In the August/September 2018 print edition of PLANSPONSOR, Editor-in-Chief Allison Cooke Mintzer addresses the problem of 401(k) cashouts, highlighting the need for consolidation via auto portability in her Insights column piece entitled "Making the Most of Savings: Is your plan designed to allow for employees to roll in their assets from a former plan?" Cooke Mintzer suggests to her plan sponsor audience that helping participants aggregate assets should "be near the top of your priority list, alongside the recent industry focus on financial wellness and debt management." Cooke Mintzer also cites statistics provided by RCH CEO Spencer Williams, noting the dramatic decrease in cashouts that occurs as balance levels rise above $20,000.
RCH in BenefitsPRO: Pairing Savings Preservation with Expanded Access for Minorities
In their October 11, 2018 article in BenefitsPRO, RCH's Spencer Williams and Tom Hawkins address an important retirement public policy question: How would a pairing of auto portability with open multiple employer plans (or “open MEPs”) impact the retirement savings of America’s minorities, and particularly, African-Americans? The RCH analysis found that expanded access initiatives, such as open MEPs, could serve as a catalyst to increase minority participation in employer-sponsored 401(k) plans, but could fall short in preserving minorities' retirement savings. When combined with auto portability, open MEPs could generate far more wealth at retirement, and deliver greater retirement security for minorities.
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