Media Coverage

Five Misconceptions About Automatic Rollovers

Most agree -- automatic rollover programs can help retirement plan sponsors deal with many of the problems associated with small-balance accounts. Still, there are important misconceptions that persist about automatic rollovers. In this article, RCH's Tom Hawkins introduces plan sponsors to a video addressing five of the most important misconceptions, and offers constructive suggestions on how sponsors can address them.

Auto-Portability Versus Authorized Portability—What’s the Difference?

Writing in 401k Specialist, RCH’s Tom Hawkins examines the positive interplay between auto portability and its nearly-automatic cousin – which he terms “authorized” portability. Authorized portability, writes Hawkins, occurs when a safe harbor IRA account not originating from within the auto portability network is matched to an active account in a plan that’s already adopted auto portability. While the accountholder must provide their consent to consolidate the balance, a frictionless automatic roll-in results, producing a win-win-win for participants, for plan sponsors and for adopting recordkeepers.

Pressure Mounts to Reunite Workers With Old Retirement Accounts

Bloomberg Law reporter Austin Ramsey addresses recent pressure on the federal government to reconnect retirement plan participants with their benefits, including the possible establishment of a retirement savings lost & found. For clarity, Ramsey turns to two experts -- Alicia Munnell, director of the Center for Retirement Research at Boston College, and RCH President & CEO Spencer Williams. Munnell's views underscore the need for consolidation and cites RCH's program of auto portability. Williams then provides Ramsey with an update on RCH's auto portability program, stating that any lost & found "must involve the private sector."

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So Happy Together: Auto Portability & Authorized Portability

Writing in the Consolidation Corner blog, RCH’s Tom Hawkins examines the positive interplay between auto portability and its nearly-automatic cousin – which he terms “authorized” portability. Authorized portability, writes Hawkins, occurs when a safe harbor IRA account not originating from within the auto portability network is matched to an active account in a plan that’s already adopted auto portability. While the accountholder must provide their consent to consolidate the balance, a frictionless automatic roll-in results, producing a win-win-win for participants, for plan sponsors and for adopting recordkeepers.

Don’t Relegate Lost & Missing Accounts to the Lost & Found—Consolidate Them in the Retirement System

RCH’s President & CEO Spencer Williams, writing in the Consolidation Corner Blog, opines on draft provisions in SECURE 2.0 legislation that call for establishment of a “lost & found” – including housing sub-$1,000 balances for all terminating 401(k) participants. As proposed, Williams observes that simply moving sub-$1,000 balances to the PBGC does little to reduce cashouts or stranded savings and offers auto portability as a “far more constructive method” to reduce cashouts and to promote consolidation of retirement savings.

New Data Proves Effectiveness of 401k Auto-Portability

Writing in 401k Specialist, RCH’s Tom Hawkins examines new data collected from a large plan sponsor who’s implemented auto portability’s key technology components, but requires affirmative consent from participants in order to consolidate their balances. The data reveals resounding success in the location of active plan accounts, in obtaining participant consent and in executing automated roll-ins -- all of which augur well for the future of auto portability and for consolidation of larger balances.

A Happy Ending for Consenting 401(k) Participants

Writing in the Consolidation Corner blog, RCH’s Tom Hawkins examines the “happy endings” possible for 401(k) participants who give their consent for moving their balances forward to their current-employer’s plan. In the piece, Hawkins reveals new data collected from a large plan sponsor who’s implemented auto portability’s key technology components, but requires affirmative consent from participants in order to consolidate their balances. The data shows resounding success in obtaining participant consent, which augurs well for the future of auto portability and for consolidation of larger balances.

DC industry must cooperate to resolve forgotten-accounts problem

Writing in InvestmentNews, contributor Fred Barstein addresses the issue of forgotten accounts, and turns to RCH President & CEO Spencer Williams for his views. Barstein writes "[w]hat is needed is a network of DC record keepers that share account information" and notes that Williams and RCH have been working on developing that "for more than a decade." Barstein quotes Williams, who states "no one argues against portability" while adding that "the network is the endgame" and requires "critical mass [to be successful]."