Media Coverage

Senate Legislation Calls for Automatic 401(k) Transfers

PLANSPONSOR's DJ Shaw examines the Advancing Auto Portability Act of 2022, introduced on 6/15/22 by Senators Tim Scott, R-South Carolina, and Sherrod Brown, D-Ohio. Referring to Senator Scott's press release, Shaw quotes Senator Scott, Alight Solutions EVP Alison Borland and RCH President & CEO Spencer Williams.

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Senators introduce bipartisan auto-portability bill

P&I Washington, DC reporter Brian Croce covers the bipartisan bill introduced in the Senate by Sens. Tim Scott, R-S.C., and Sherrod Brown, D-Ohio -- the Advancing Auto Portability Act of 2022. Croce highlights the key features of the proposed legislation, quotes Sens. Scott and Brown, and notes that "[t]he bill has earned support from a wide swath of the retirement industry." Croce quotes RCH founder, president and CEO Spencer Williams, who praises the bill's bipartisan sponsors, while characterizing the legislation as "a huge win for America's hardworking retirement-savers."

Bipartisan Bill Backs Auto-Portability

Writing in NAPA Net, ARA Chief Content Officer Nevin Adams briefs readers on the 6/15/22 announcement of the bipartisan Advancing Auto Portability Act of 2022, introduced in the U.S. Senate by Senators Tim Scott (R-SC) and Sherrod Brown (D-OH). Adams notes the primary features of the legislation, mentions the role of Retirement Clearinghouse (RCH) and advises his readership to "stay tuned."

Senators Scott, Brown Introduce Bill to Increase Retirement Security

Today, U.S. Senators Tim Scott (R-S.C.) and Sherrod Brown (D-Ohio) introduced the Advancing Auto-Portability Act of 2022, a bill that would allow a worker’s 401(k) savings account to be automatically rolled over from a previous employer to a new employer. The legislation would cut red tape to help Americans who change jobs frequently to increase retirement savings.

Five Reasons Why New 401(k) Auto Portability Legislation is So Important

Writing in the Consolidation Corner blog, Renee Wilder Guerin, RCH's EVP of Public Policy, offers readers five reasons why a newly proposed U.S. Senate bill addressing auto portability is so important. The Advancing Auto Portability Act of 2022 -- co-sponsored by Senators Tim Scott (R-S.C.) and Sherrod Brown (D-Ohio), would offer tax credits to plan sponsors who implement auto portability, and codify rules for an industrywide auto portability network. The bill is expected to be rolled into the Senate version of the bipartisan Securing a Strong Retirement Act of 2022, which passed the U.S. House of Representatives on March 29 of this year.

The Worst 401(k) Mistake You Can Make When You Switch Jobs

Bloomberg's Suzanne Woolley examines the increased phenomenon of "job-hopping" which places workers at an increased risk of "making one of the biggest financial mistakes out there" -- cashing out their 401(k) balances. Woolley references the RCH Cashout Calculator and notes that Vanguard's latest How America Saves report references auto portability as a "solution to cashouts that it will offer plan sponsors within a few months." "That could have a big impact" continues Woolley, citing EBRI's $1.5 trillion savings projection for auto portability.

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Vanguard: Retirement Plans Should Evolve for the Modern Worker

On June 7th, Vanguard released the newest edition of How America Saves, the firm’s seminal report on 401(k) plan design and retirement savings habits. Through its annual, comprehensive analysis of nearly five million 401(k) accounts recordkept at Vanguard, the report reveals additional plan design opportunities employers can address to further improve workers’ retirement readiness. In the release, under key findings, Vanguard notes that "cash outs disproportionately impact younger, low-balance participants" and adds that "[a]uto portability services and revisions to minimum balance rules can help decrease cash out rates."

5 New Automatic Rollover Criteria for 401k Plan Sponsors

In his latest piece in 401k Specialist, RCH's Tom Hawkins writes that the criteria for selecting an automatic rollover IRA provider have fundamentally changed. In the past, most 401(k) plan sponsors simply accepted the solution offered through their recordkeeper or TPA. While others performed due diligence, they applied a limited set of criteria including basic fees, investment options and accountholder service. Few considered the grim realities facing terminated participants forced out into safe harbor IRAs, including excessive cashouts, forgotten accounts, hidden fees, and barriers to exit. Now, writes Hawkins, it's incumbent upon plan sponsors to fundamentally “re-think” these programs, incorporating 5 new criteria to ensure that their automatic rollover IRA programs are fiduciary-friendly, while dramatically improving participants’ retirement outcomes.