Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
The Impact Of SECURE 2.0 On Americans’ Retirement Readiness
Writing in Private Wealth Magazine, noted private wealth expert Russ Alan Prince interviews Neal Ringquist, RCH's EVP and Chief Revenue Officer, about which SECURE 2.0 provisions Ringquist feels will impact retirement savings most, and what advice advisors should give their clients regarding these provisions. In the interview, Ringquist draws attention to SECURE 2.0 provisions that codify auto portability, as well as the related provision that increases the limit on 401(k) account balances that can be automatically cashed out by sponsors and recordkeepers and transferred to default IRAs, from $5,000 to $7,000. Ringquist offers Prince a compelling primer on why these provisions will reduce cashout leakage, benefitting plan sponsors, participants and the advisors who serve them.
Vanguard, Retirement Clearinghouse Set Sights on IRAs
Napa Net's Ted Godbout covers the announcement of Vanguard and Retirement Clearinghouse (RCH) expanding their collaboration to include services for individual retirement account (IRA) holders. The aim is to reconnect IRA holders with forgotten or lost retirement funds, especially those left behind when employees change jobs, to preserve and maximize their assets. The initiative builds on their existing relationship, which was focused on an auto-portability service for 401(k) plans. By extending the partnership to forgotten IRA accounts, both companies aim to improve retirement outcomes for under-saved and underserved participants by consolidating stranded or forgotten accounts.
The new urgency for mitigating 401(k) account cash-outs
Findings in a recent study by the Sauder School of Business at the University of British Columbia (UBC) underscore that, despite all of the media articles offering tips for how to save more for retirement, many Americans still make the self-destructive decision to cash out their savings following a job separation. RCH’s Spencer Williams, writing in Employee Benefit News, reminds readers that “there are solutions in place for 401(k) plan sponsors and recordkeepers to help participants avoid the all-too-easy decision to cash out their savings” including auto portability, which is also supported by substantial research demonstrating its efficacy in preventing cashout leakage.
Vanguard Expands Retirement Clearinghouse Eligibility to IRA Account Holders
Writing in PlanAdviser, Alex Ortolani reports on Vanguard's expanded partnership with Retirement Clearinghouse to include services for their individual retirement account (IRA) holders. This collaboration aims to reconnect IRA holders with forgotten or lost retirement savings that may have occurred during job changes. The expanded partnership will involve transferring lost IRA accounts to Retirement Clearinghouse, helping account holders preserve their retirement assets.
With Eye on IRAs, Vanguard Expands Relationship with Retirement Clearinghouse
401k Specialist Editor-in-Chief Brian Anderson, reports on Vanguard's announcement of an expanded collaboration with Retirement Clearinghouse (RCH) that will reconnect IRA accountholders with retirement funds they may have lost or forgotten. The initiative extends the existing relationship with RCH, which launched in 2021, as the two companies have collaborated to prepare an auto-portability service to 401(k) plan sponsors and their participants.
Auto-Portability, Step by Step
PLANSPONSOR's Ed McCarthy takes a deep dive, step-by-step examination of auto portability as delivered by the Portability Services Network (PSN), which accounts for 63% of the defined contribution market, and which McCarthy notes, is "picking up steam." For details, McCarthy turns to RCH's Spencer Williams and Neal Ringquist, who opine on the technical details, while Vanguard's Steve Holman, a PSN Board member, offers the recordkeeping view.
Also featured in PlanAdviser.
Auto-Portability Solutions Show Signs of Growth
The PLANSPONSOR writing team of Natalie Lin and Remy Samuels tackle a big development in the DC recordkeeping world, when on 7/6/23, Principal announced that it was joining with the Portability Services Network (PSN), an industry-led utility dedicated to the adoption of auto portability. The pair writes: "[t]he addition of Principal means the country’s five largest recordkeepers by assets are now part of the network, with Principal joining Fidelity Investments, Empower, Vanguard and Alight Solutions, according to the latest ranking by PLANSPONSOR."
Principal Becomes 6th Recordkeeper to Join Portability Services Network
401k Specialist Editor-in-Chief Brian Anderson covers the 7/6/23 announcement by Principal that it has joined the Portability Services Network -- a "consortium of retirement plan service providers focused on helping America’s under-served and under-saved workers improve their retirement outcomes by making it easier to transfer their workplace retirement accounts when changing employers." With the move, reports Anderson, "Principal becomes a board member and one of seven owning members of PSN, which utilizes the auto-portability solution created by Retirement Clearinghouse."
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