Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
Lower-Income Workers Benefit the Most From Auto-Portability
PLANSPONSOR's DJ Shaw reports on the growing body of research indicating that auto portability can help close the wealth gap for lower-income workers and minorities. Citing research from Alight Solutions, Shaw walks readers through system-wide leakage statistics and provides an illustration of the high cost of cashing out small balances. Shaw turns to RCH President & CEO Spencer Williams, who provides a primer on RCH's Auto Portability service, followed by RCH EVP of Public Policy, Renée Wilder Guerin, who refers to the minority wealth gap, stating “in today’s world of growing interest in diversity, equity and inclusion, auto-portability is a solution that is measurable—you can measure the impact of someone keeping their retirement account going.”
The ‘Fix’ for Missing 401k Participants and Forgotten Accounts
Auto portability has received a lot of well-deserved attention for its ability to reduce cashout leakage by automatically consolidating small-balance retirement savings, but its effect on preserving participants’ retirement savings is only half of its compelling story. In an opinion piece for 401k Specialist, RCH's Tom Hawkins explores how auto portability can also act as the 'fix' for the related problems of missing participants, uncashed distribution checks and small, forgotten 401(k) accounts.
There’s a Monopoly in 401(k) Auto-Porting, for Good Reason
Ingites' Joe Morris takes a balanced view of the state of the market for "auto-porting" (aka auto portability) small 401(k) balances, and finds that Retirement Clearinghouse stands alone in the retirement industry, in terms of its willingness and ability to forge ahead with an auto portability program. Morris turns to RCH EVP Neal Ringquist, who, along with Jason Roberts of the Pension Resource Institute, describe both the challenges that must be overcome, along with the opportunities that lay ahead. Ringquist sums up the present situation by stating: "“I feel confident that [auto portability] will be a fairly ubiquitous default in the not-too-distant future.”
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The ‘Fix’ for Missing Participants, Uncashed Distribution Checks and Forgotten Accounts
Auto portability has received a lot of well-deserved attention for its ability to reduce cashout leakage by automatically consolidating small-balance retirement savings, but its effect on preserving participants’ retirement savings is only half of its compelling story. In this article in the RCH Consolidation Corner blog, Tom Hawkins explores how auto portability can also act as the 'fix' for the related problems of missing participants, uncashed distribution checks and small, forgotten 401(k) accounts.
The ‘Great Resignation’ Screams for Improved Retirement-Savings Portability
RCH President and CEO Spencer Williams, writing in the RCH Consolidation Corner blog, breaks down the phenomenon known as The Great Resignation. Williams makes a compelling case that -- for defined contribution plans -- seamless plan-to-plan portability, including auto portability, are absolutely vital to preserving affected participants' retirement savings, and in ensuring that their retirement savings balances are moved forward when they re-enter the workforce.
Legislative Proposals Would Bolster Retirement Income Adequacy
PLANSPONSOR reporter Noah Zuss covers EBRI's 1/20/22 Issue Brief #550, which examined the impact of four recent policy proposals upon the nation's retirement deficits, including their impact on racial and ethnic demographic segments. While all proposals reduced retirement savings shortfalls, the combination of ACPAs and an enhanced saver's credit produced the best results. Importantly, when auto portability was added to both the ACPA and saver's credit, overall retirement savings shortfalls further decreased by 10.8% to 14.3%, depending on race/ethnicity.
401k Market Minute: Auto Portability’s Big Boost
In his weekly 401k Market Minute video segment, 401k Specialist Editor-in-Chief John Sullivan leads off his news round-up with the "big boost" obtained by auto portability following its recent endorsements by the nation's two premier civil rights organizations, the NAACP and the National Urban League.
EBRI: Auto Features, Saver’s Credit Boost Could Slash Retirement Deficits
NAPA Net reporter Ted Godbout covers the release of EBRI Issue Brief #550, which examined the effects of potential public policy initiatives, including an Automatic Contribution/Plan Arrangement (ACPA), an enhanced saver's credit, a "skinny" 401(k), and a student loan debt employer match. Importantly, the EBRI study also noted the "stacking" effect of auto portability onto the ACPA and Saver's Credit combo, where it reduced retirement deficits by an additional 11% to 14%, depending on race.