Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
PLANSPONSOR's Rebecca Moore covers the 3/13/18 release of the joint Boston Research Technologies / Retirement Clearinghouse Missing Participant Survey, recapping the survey's key findings, and mentioning earlier research conducted by Retirement Clearinghouse in simulating the effects of auto portability.
Today, Boston Research Technologies (BRT) and Retirement Clearinghouse (RCH) issued a joint press release announcing the key findings from a survey examining the retirement industry’s missing participant problem. The survey, The Mobile Workforce’s Missing Participant Problem, is the first to examine the problem from the perspective of the participant and offers unique insights into its various dimensions.
In his latest article in Employee Benefit News, RCH's Spencer Williams breaks new ground in addressing the age-old problem of missing participants. Citing new research from RCH and Boston Research Technologies showing that 67% of inactive plan participants can be found via "auto locate" technology, Williams argues that the auto locate process will revolutionize the location of missing participants and finally bring an end to the insanity of "doing the same thing over and over, and expecting a different result."
The problem of missing participants has taken on a new sense of urgency in light of widespread reports that the Department of Labor is focusing heavily on missing participants when auditing plan sponsors and record-keepers.
In her 2/14/18 article, Workforce Magazine's Patty Kujawa examines the ongoing dilemma of 401(k) cashout leakage, quoting RCH's Spencer Williams as well as Keith Overly, Executive Director of the state of Ohio's defined contribution plan. Both agree that cashouts are a big problem and emphasize different aspects of its prevention, with Williams focusing on measures that make it easier to move retirement savings forward when participants change jobs.
In his latest article in 401k Specialist, RCH's Tom Hawkins makes the case for creating a 'sustainable' 401(k) defined contribution system. According to Hawkins, the current 401(k) system is unsustainable due to 1) rampant cashout leakage, 2) an explosion of small-balance accounts and 3) a surge in missing participants. Auto portability, says Hawkins, can address these problems and bring sustainability to our defined contribution system.
With "Rothification" in the rear-view mirror in 2017, retirement savings policymakers have begun turning their attention to other, more-promising initiatives in 2018 -- namely, auto portability and missing participants.
Two retirement savings public policy initiatives – auto portability and the problem of missing participants – are very likely to see significant progress in 2018. Both initiatives enjoy strong bipartisan support, promise to streamline and strengthen America’s defined contribution system, and will preserve the retirement savings of millions of Americans by ensuring that their savings move forward when they change jobs.