Auto Portability in the News

Browse the most comprehensive collection of articles in the media that feature auto portability.


May
16
2022

401(k) Portability in Four Movements

RCH's Tom Hawkins examines the experience of a very large (250,000+ participants) 401(k) plan sponsor that has been highly successful in delivering improved participant outcomes by incrementally adopting a full program of retirement savings portability. Looking at four distinct five-year periods that coincided with increasing levels of portability and improved participant outcomes, Hawkins writes that "there’s no finer example of those [improved] outcomes than the multi-year, real-world experience of this plan sponsor, where thousands of participants increased their prospects for a timely and comfortable retirement."

May
09
2022

How to Address the Achilles’ Heel of State Auto-IRA Programs

RCH's Tom Hawkins, writing in 401k Specialist, offers his view that state-sponsored auto-IRA programs, despite their potential size and strength, suffer from an obvious weakness, or "Achilles’ heel": a lack of retirement savings portability. Hawkins writes: "Without addressing their portability problem, auto-IRA programs could expand, but may never reach their full potential, housing large numbers of churning, small-balance accounts. However, with adequate support for portability both into and out of these programs, they could dramatically increase the odds that they deliver on their promise of building incremental retirement wealth for millions of Americans."

May
05
2022

Addressing the Achilles’ Heel of Auto IRA Programs

Writing in the RCH Consolidation Corner blog, Tom Hawkins offers his view that state-based Auto IRA programs, despite their potential size and strength, suffer from an obvious Achilles’ heel: a lack of retirement savings portability. Hawkins writes: "Without addressing their portability problem, Auto IRA programs could expand, but may never reach their full potential, housing large numbers of churning, small-balance accounts. However, with adequate support for portability both into and out of these programs, they could dramatically increase the odds that they deliver on their promise of building incremental retirement wealth for millions of Americans."

May
04
2022

Targeting small, uncashed 401(k) distribution checks can generate big savings

Writing in Employee Benefit News, RCH President & CEO Spencer Williams examines the ongoing problem of uncashed 401(k) distribution checks. Worker mobility, as well as the prevalence of automatic cash-outs for balances under $1,000, conspire to create an administrative burden as well as a significant fiduciary risk for plan sponsors. Auto portability, writes Williams, can “mitigate this exposure, and help participants increase retirement savings by significantly reducing the need for automatic cash-outs” -- an outcome that Williams describes as “a win-win.”

May
03
2022

Key 401k Portability Finding in EBRI’s Retirement Confidence Survey

Writing in 401k Specialist, RCH's Tom Hawkins digs into EBRI's 2022 Retirement Confidence Survey (RCS), locating an interesting and valuable finding not referenced in the organization’s initial report, officially released to the public on Thursday, April 28th. In an excerpt of a report available to survey partners, the survey found that a plurality of job-changing 401(k) plan participants favor automatic plan-to-plan portability over consolidating their savings to an IRA, or to leaving their savings behind in their former employer’s plan. This result comes on the heels of EBRI’s 2021 survey, which found that nearly 9 in 10 participants believed that auto portability would be valuable to them. Hawkins adds that "others -- including the Department of Labor – could find 401(k) participants’ strong preference for plan-to-plan portability compelling."

Apr
27
2022

What The Great Resignation Means For 401(k) Accounts

Stephanie Zaleski, CPA and Employee Benefit Plan Services professional for ORBA, authors an article in Mondaq.com addressing the implications of The Great Resignation for sponsors of 401(k) plans. In her piece, Zaleski highlights the increased pace of job-changing, which creates an abundance of left-behind and potentially forgotten 401(k) accounts, resulting in a plethora of problems for sponsors. "To help mitigate these issues in the future, some employers are adopting auto-portability benefits" writes Zaleski, adding that auto portability "automatically transfer small balances to new employers." Zaleski closes by suggesting that plan sponsors should not "waste a plan restatement cycle" and act by July 31st to include new provisions in their defined contribution plans.

Apr
27
2022

Key Portability Finding Located in EBRI’s Retirement Confidence Survey

RCH's Tom Hawkins digs into EBRI's 2022 Retirement Confidence Survey (RCS) and finds an interesting and valuable finding not referenced in the organization’s initial report, officially released to the public on Thursday, April 28th. In an excerpt of a report available to survey partners, the RCS has found that a plurality of job-changing 401(k) plan participants favor automatic plan-to-plan portability over consolidating their savings to an IRA, or to leaving their savings behind in their former employer’s plan. This result comes on the heels of EBRI’s 2021 survey, which found that nearly 9 in 10 participants believed that auto portability would be valuable to them, and Hawkins believes "others -- including the Department of Labor – will find 401(k) participants’ strong preference for plan-to-plan portability compelling."

Apr
25
2022

Auto portability seen as plug for 401(k) leaks

In her 4/25/22 article, Pensions & Investments reporter Margarida Correia examines auto portability's role in plugging leakage for small-balance 401(k) accounts. In her piece, Correia turns to several industry observers, including RCH EVP & Chief Revenue Officer Neal Ringquist, Alight Solutions' Director of Public Policy Greg Long and Vanguard's Head of Strategic Retirement Consulting David Stinnett. All three offered optimistic views of auto portability's efficacy, its attractiveness to plan sponsors, and its prospects for success. While auto portability is in the early stages of adoption and is building plan sponsor awareness, Long stated that auto portability will eventually "be standard operating procedure" while Stinnett added that "[p]lan sponsors are interested to find out more once the service is fully available."

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