Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
When the Auto Portability Simulation (APS) model was recently unveiled at EBRI's 78th Policy Forum, a lot of attention was paid to the "marquee" numbers, and rightly so. I am referring here to the $154 billion reduction in cashout leakage, as well as the $115 billion increase in plan-to-plan roll-ins that occur under the adoption of Auto Portability.
Safe Harbor IRAs: Searching for an appropriate IRA provider By Judy Faust Hartnett of PLANSPONSOR
In his 6/9/16 article in Employee Benefit News, RCH CEO Spencer Williams reminds us that leakage is a big problem for the U.S. retirement system.
First, let's review the definition of "leakage." If we think of total 401(k) savings as a bucket of water, "leakage" refers to those retirement savings that, like water in a leaky bucket, are withdrawn from the U.S. retirement system every year. There are three holes in the bucket: cash-outs at the point of job change, hardship withdrawals, and loan defaults. According to the U.S. Government Accountability Office, one of these holes is much bigger than the other two combined nearly 89% of all leakage is attributed to cash-outs that occur when a participant changes jobs. Hardship withdrawals and loan defaults together account for the remaining 11%.
As they set out into the working world, RCH President & CEO Spencer Williams counsels the Class of 2016 on the importance of developing good saving habits from the very beginning. Using the phrase "Strive for 25" Williams notes that the $25,000 retirement savings threshold is a critical milestone that all graduates should target.
In his 6/03/16 MarketWatch column, RCH CEO J. Spencer Williams gives the Class of 2016 advice theyâ€™re not likely to hear in a Commencement Speech:"Strive for 25"
On May 12th, Retirement Clearinghouse President & CEO J. Spencer Williams unveiled the Auto Portability Simulation (APS) at the Employee Benefit Research Institute's 78th Policy Forum. The APS was developed by Retirement Clearinghouse in conjunction with Dr. Ricki Ingalls, Chair of Computer Information Systems at Texas State University, and Principal at Diamond Head Associates, Inc.
Retirement Income Journal's Kerry Pechter goes in-depth into Auto Portability with RCH executives Spencer Williams and Tom Johnson.