Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
Writing in Lexology, Eversheds Sutherland LLP provides a retrospective of guidance issued in 2018 by the Department of Labor (DOL) under ERISA, highlighting the DOL's sole 2018 Advisory Opinion, which addressed the RCH Auto Portability program. Linking to their earlier analysis of the Advisory Opinion, the authors further speculate on the DOL's motives, stating that "auto portability offers a means to advance the important policy goal of preserving and improving the efficiency of retirement savings, which may account for DOL’s willingness to engage on this issue."
In his monthly column for Employee Benefits News, RCH Founder, President & CEO Spencer Williams offers plan sponsors a five-point checklist for automatic rollover programs, shining light on features that may require attention, particularly in light of the recent DOL guidance on auto portability.
RCH Founder, President & CEO Spencer Williams offers plan sponsors a five-point checklist for automatic rollover programs, shining light on features that may require attention, particularly in light of the recent DOL guidance on auto portability.
How Auto Portability Serves Participants’ Best Interests - Part 1: Dramatically Improved Participant Outcomes
401kSpecialist's Brian Anderson finds a lot to like about auto portability in EBRI's Issue Brief No. 473, which compares outcomes of participants in 401k plans with auto-enrollment against defined benefit plans. The research, says Anderson, shows "how auto-portability in 401k plans could positively impact the retirement security for millions of job-changing Americans by preventing 401k plan leakage before it can occur." Anderson continues, writing: "[t]he concept of auto-portability is a darling of major retirement industry associations, and it’s not hard to see why."
In PLANSPONSOR's Industry Voices, Jonathan Barry, senior retirement strategist at MFS Investment Management, discusses key trends retirement plan sponsors may expect to see in 2019, the issues they may face and offers his thoughts on how to address them. Turning to auto portability, Barry states that recent advances represent an "important step that will help with the issue of 'disrupted journeys,' which has become increasingly prevalent with more Americans working multiple jobs over their career."
In his 2/19/19 article in BenefitsPRO, RCH's Tom Hawkins examines new research, authored by EBRI Research Director Jack VanDerhei, Ph.D., comparing the retirement income generated by 401(k) plans with auto enrollment against defined benefit (DB) plans. While EBRI's primary objective was to address growing concern over the relative decline of DB plans, the study also identified significant, incremental benefits of auto portability, adding to a growing body of research from EBRI demonstrating that auto portability increases retirement security for 401(k) participants.
Expanding on research comparing DB plans vs. 401(k) plans with auto enrollment, on 2/14/19 EBRI released an infographic revealing the beneficial effect of auto portability on Milliennials. When auto portability is added to 401(k) plans, Millennials -- both male and female, for all years of eligibility, and for all income quartiles -- experience significant improvements in their 401(k) plan performance, as measured by equivalent break-even DB plan accrual rates. The latest EBRI analysis adds to a considerable body of evidence that auto portability is a leading retirement savings public policy initiative.