Media Coverage

TIAA joins retirement plan portability network

InvestmentNews' Gregg Greenberg reports on the 4/4/23 announcement that TIAA is joining the Portability Services Network (PSN), "a group that aims to help America’s under-saved, minority and low-income workers improve their retirement outcomes" by accelerating the nationwide adoption of auto portability. Greenberg notes the affiliation of PSN with Retirement Clearinghouse (RCH) and quotes Thasunda Brown Duckett, president and CEO of TIAA.

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Are IRAs in the Best Interest of Workers and Retirees?

Writing in Wealth Management, Fred Barstein analyzes the "accepted wisdom" of rolling over defined contribution balances into IRAs. In the piece, Barstein references auto portability and the Portability Services Network, opining that the "data exchange consortium of major providers including Fidelity, Vanguard, Alight and Empower led by the Retirement Clearinghouse, is currently focused on enabling plan-to-plan low balance account transfers, which could eventually be used to create a 'universal' DC plan."

Financial Literacy Can Help Close the Minority Wealth Gap for Retirement Savings

In observance of Financial Literacy Month, RCH and PSN President & CEO Spencer Williams offers his perspective on how “members of the retirement services industry have an opportunity to pause and think about how they can help empower more people to achieve a financially secure retirement.” Williams notes that plan sponsors and recordkeepers have a vital role in preventing premature 401(k) cashouts via education about their detrimental effects and through the adoption of auto portability “which can enable them to transport and consolidate their accounts instead.”

Ask the Expert – SECURE 2.0 Act: Auto Portability

In the March-April edition of the Employee Benefit Plan Review, Katrina Berishaj and Megan Stamm collaborate to perform an extensive legal analysis of the provisions for auto portability included in the recent SECURE 2.0 Act. Their analysis dives deep into the detail of those provisions, including the primary processes and fiduciary responsibilities that are encompassed by the legislation.

Video: Alight's Greg Long Addresses Auto Portability at DCIIA Forum

Taking part in a SECURE 2.0 panel at the 3/8/23 DCIIA Innovation Forum, Alight Solutions' Greg Long took the opportunity to inform and educate attendees about auto portability and the new Portability Services Network. Long offered a primer on auto portability -- how it addresses long-standing portability and cashout leakage issues within America's defined contribution system -- and how the formation of the new Portability Services Network will rapidly advance the availability and adoption of the new feature. Long's comments begin at the 21:25 mark.

Warning! The Federal Government Could be Coming for Your 401(k)

The editors of NAPA Net examine a Senate bill proposed by Sens. Hickenlooper and Tillis (Retirement Savings for Americans Act) that they contend would effectively establish a federally-sponsored multi-employer (MEP) plan that would compete with private plans. The article cites auto portability as one of several initiatives in the private sector that shows responsiveness to the needs of the under-saved, and obviating the need for such over-reaching federal legislation.

How to Help DC Participants Find and Consolidate Accounts

Writing in WealthManagement.com, Fred Barstein examines a new entrant into the account consolidation derby who purports to locate and consolidate 401(k) retirement savings accounts. Barstein also mentions Retirement Clearinghouse (RCH) and the Portability Services Network (PSN), noting: "Some entrepreneurial companies are not waiting. The Retirement Clearinghouse created the Portability Services Network, which currently includes Fidelity, Vanguard, Empower and Alight with others likely to join, enabling smaller accounts to move from one provider to another rather than getting cashed out, leading to significant leakage."

Set It and Actually Forget It

The New York Times' Charlotte Cowles examines the problem facing millions of Americans who'll change jobs, leaving behind retirement savings at their former employer, or worse -- cashing out their savings altogether. Cowles turns to Vanguard's Steve Holman, who characterizes auto portability as the easiest, default solution, stating: “[a] participant doesn’t even have to do anything. You go to a new job, open a new plan, and the Portability Services Network will automatically find your old account and transition those assets in short order.” Holman also expresses confidence that "over time, we’ll have broad adoption across the industry" of auto portability.