Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
The City of Charlotte's Cory Burkarth covers the Tuesday, 8/11 announcement that RCH will expand it presence in Charlotte, adding 300 new employees and investing more than $4 million in their headquarters and corporate office. Burkharth reports that RCH will be moving into the Ayrsley development in Steele Creek, adding positions across the board. Burkharth notes that the benefits of RCH's auto portability solution are "staggering" and aligns well with the City's mission to improve economic mobility. The piece quotes RCH President & CEO Spencer Williams, as well as Charlotte mayor Vi Lyles, who lauds the expansion initiative.
In his 8/11/20 article in RCH’s Consolidation Corner, RCH’s Tom Hawkins characterizes the phenomenon of cashout leakage as a “tragicomedy” – incorporating aspects of both a tragedy and a comedy, but ultimately delivering a happy ending. While cashout leakage represents an ongoing tragedy, the term itself is goofy, and tough to take seriously, asserts Hawkins. However, recent events indicate that the widespread adoption of auto portability will finally deliver a happy ending to the problem.
Writing in RCH's Consolidation Corner blog, RCH President & CEO Spencer Williams addresses the urgent need to mitigate the impact of COVID-19 on Americans' retirement readiness. Williams observes that the surge in pandemic-driven unemployment, the relaxed restrictions on withdrawals, along with a pre-existing propensity to cash out -- spells trouble for retirement security. To help address the growing threat, Williams urges sponsors and recordkeepers to adopt auto portability, which he states will "discourage participants from cashing out, but also eliminate the need for automatic cash-outs."
Writing in Pensions & Investments, Alight EVP Alison Borland articulates her strong advocacy of auto portability, which she describes as the "brainchild of Retirement Clearinghouse." Addressing the most important factors that influenced Alight Solutions’ decision to become a market leader in embracing the new plan feature, Borland cites auto portability’s benefits to the broader retirement ecosystem, while imploring her audience to join her firm in going "all-in on auto portability.”
In his 7/30/20 column, NAPA Net's Nevin Adams reports on the terms of a possible settlement of the Princeton 403(b) excessive fee suit, suggesting that RCH could have a role as a trusted third party. Adams writes "for the members of the Settlement Class who no longer have an account in the plans as of the time of distribution, the distribution will be made via a tax-qualified distribution process, which will transfer those funds to Retirement Clearinghouse LLC — to be deposited into safe-harbor automatic rollover individual retirement accounts." In a footnote to the article, Adams also mentions RCH's "pioneering auto-portability program....recently adopted by Alight."
In her Tuesday update, Financial Advisor Magazine Publisher Cindy Taylor recaps the latest, hot topics covered by their reporters. In the update, Taylor singles out the efforts of FA Senior Editor Christopher Robbins, whose recent focus on fintech stories included filing a "piece looking at a new automated 401(k) program from Alight Solutions & Retirement Clearinghouse."
Writing in 401k Specialist, RCH’s Tom Hawkins foresees the emergence of a COVID-19 retirement savings gap, driven by unprecedented levels of terminated participants and relaxed penalties on withdrawals. To address the problem, Hawkins calls upon the private sector to embrace solutions such as auto portability -- that will begin to close the gap, stem unnecessary cashout leakage and deliver ongoing benefits that will extend well beyond the current crisis.
In his 7/23/20 piece for 401kTV, Managing Editor Steff Chalk examines financial wellness programs in light of the COVID-19 pandemic. Chalk states that "the pandemic has wrapped financial wellness benefit programs in a shroud of reality" and that quantifying their results is now more important than ever. For a dose of reality, Chalk turns to RCH President & CEO Spencer Williams, extensively citing his 1/20/20 article in Employee Benefit News. In that article, Williams makes a strong case for auto portability "as a solution to the financial wellness ROI conundrum for employers."